Moody's places seven Hungarian banks on review for downgrade

History

September 25, Moody's Investors Service placed the foreign currency deposit ratings of seven Hungarian banks, including OTP Bank Nyrt, on review for possible downgrade after a similar review of the country's sovereign ratings last week. OTP Bank and its mortgage unit, OTP Jelzálogbank Zrt, Budapest Bank Zrt, K&H Bank Zrt, MKB Bank Nyrt, CIB Bank Zrt and state-owned Magyar Fejlesztési Bank Zrt were cited for review by Moody's yesterday, the company said in a statement. The move comes after Moody's placed Hungarian sovereign ratings on a similar review September 22, which will focus on assessing the government's willingness and ability to cut spending. Moody's rates the country's long-term foreign and local currency debt at A1, four steps from the top. Hungarian protesters demanding the resignation of Prime Minister Ferenc Gyurcsány clashed with riot police in downtown Budapest three nights last week. The public outcry may make it difficult for the government to implement its austerity measures, according to Moody's. (Bloomberg)

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.

Support the BBJ

Culture

Esterházy Castle in Fertőd Undergoes Spectacular Renovation

Budapest Culture | Nov 20, 2023, 16:05

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov...

Budapest Culture | Jun 8, 2023, 10:00

Sümeg Castle Reopens

Budapest Culture | Mar 30, 2023, 15:05