Erste Bank: S&P and Fitch ratings unchanged on new holding structure

Standard & Poor's Ratings Services agency has stated that its A/A-1 counterparty credit ratings on Erste Bank remain unchanged following the bank's announcement of plans to optimize the group's organizational structure. Standard & Poor's expects that the organizational changes are aimed at increasing the group's efficiency and transparency, and should not have wider implications on the group's business focus and its role within the Austrian savings banks sector. Fitch Ratings agency has also affirmed its rating on Erste Bank with rating at Issuer Default A, Short-term F1, Individual B/C and Support 1 and confirmed stable outlook.

Our view:
We do not expect the news to have a significant impact on the stock price. Those rating actions follow yesterday's announcement by Erste Bank on creation of holding company structure by mid-2008 as part of its group transformation project.