Moodyʼs revisits banksʼ ratings and outlooks; upgrades possible
Photo by Gil C / Shutterstock.com
Ratings agency Moodyʼs Investors Service yesterday took rating actions on five Hungarian banking groups, prompted by the rating agencyʼs change of Hungaryʼs Macro Profile to “Moderate-” from “Weak+”, the agency announced in a press release late yesterday. Upgrades in the outlooks or ratings of the banks are possible.
“The strengthening of the Macro Profile is driven by the improvement in the Hungarian banksʼ operating environment, in particular the gradual recovery in credit demand which should support banksʼ lending growth and revenues after several years of loan book contraction,” Moody’s said in the press statement.
The following banksʼ ratings were placed on review for upgrade by Moody’s: the long-term ratings and rating inputs of Kereskedelmi & Hitel Bank Rt. were placed on review for upgrade, while its Counterparty Risk Assessments (CRA) of Baa3(cr)/Prime 3(cr) were affirmed; all long-term ratings and rating inputs of Erste Bank Hungary Zrt. were placed on review for upgrade; all long-term ratings and rating inputs of Budapest Bank Rt. were placed on review for upgrade; and the long-term ratings of MKB Bank Zrt.ʼs were placed on review for upgrade, while the bankʼs caa2 baseline credit assessment (BCA) and adjusted BCA and its B2(cr) long-term CRA were affirmed.
“During the review, Moodyʼs will assess the impact of improved operating conditions and of the change in the Macro Profile of Hungary on these banksʼ credit fundamentals, which would likely lead to upgrades of the banksʼ long-term ratings of one to three notches”, the statement said, adding that the review could be carried out in the next two months.
The following banking groupʼs ratings have been affirmed by Moody’s: all long-term ratings and rating inputs of OTP Bank NyRt have been affirmed – with the outlook on its Baa3 long-term local currency deposit rating changed to positive from stable, while the positive outlook on its Ba2 foreign-currency deposit rating was maintained. At the same time, a Ba1 local currency issuer rating was assigned to OTP Jelzálogbank Zrt. while its deposit ratings were withdrawn, Moodyʼs said.
In addition, the ratings and outlook of other Moodyʼs rated Hungarian banks – such as MFB Hungarian Development Bank Private Limited Companyʼs (MFB) and FHB Mortgage Bank Co. Plc. – were unaffected by yesterday’s actions, Moody’s added.
Czech Economic Sentiment Hits 1-year High
Chinese President to Visit Budapest in May
LOT Seoul Flight Lands in Kazakhstan Due to Drunken Passenge...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
