According to news wire MTI, the agency revised the outlook on both banks to negative from stable.
OTP’s ratings were raised one notch over Hungary’s sovereign rating in light of the lender’s expansion abroad and reduced exposure to country risk in Hungary.
The share of the Hungarian loan book has fallen to 32% of the total portfolio, it added.
The negative outlook mirrors the negative outlook on the sovereign as well as the agency’s assessment that OTP’s asset quality and financial performance could be adversely affected by rising economic and geopolitical challenges that could affect core markets.
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