Moody’s Takes Rating Actions on Hungarian Banks

Economy

Moody’s Investors Service on Tuesday said it took rating actions on six Hungarian banks, following the upgrade of Hungary’s sovereign rating to Baa2 from Baa3, with a stable outlook, on Friday. Moody’s upgraded the long-term backed deposits and long-term backed senior debt ratings of the state-owned Hungarian Development Bank (MFB) to Baa2 from Baa3, with a stable outlook.

It upgraded the Counterparty Risk Assessment (CR Assessment) of OTP Bank, Hungary’s biggest commercial lender, to Baa1(cr) from Baa2(cr) and initiated a review for upgrade on the bank’s Baa1 long-term deposit ratings and its Baa1 long-term Counterparty Risk Ratings (CRR).

Other upgrades include OTP Jelzálogbank, OTP’s mortgage unit, Erste Bank Hungary, K&H Bank and Raiffeisen Bank.
“The upgrade of the backed long-term deposit and long-term senior debt ratings of MFB … reflect their alignment with the sovereign’s ratings given the government’s full ownership and direct, irrevocable and unconditional guarantee of MFB’s liabilities,” Moody’s said.

 

hungarymatters.hu

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