S&P affirms Eximbank ratings at ʼBB+/Bʼ
American financial services company Standard & Poorʼs (S&P) yesterday announced it affirmed its ʼBB+ʼ long-term and ʼBʼ short-term issuer credit ratings on Hungaryʼs official state export credit agency, Magyar Export-Import Bank, Hungarian news agency MTI reported. S&P said that the outlook is stable.
"We equalize our long-term rating on Hungary Eximbank with the ʼBB+ʼ long-term sovereign credit rating on Hungary, given our view of the bank as a government-related entity and our opinion that there is an almost certain likelihood that the Hungarian government will provide timely and sufficient extraordinary support to Hungary Eximbank in the event of financial distress," S&P reportedly said in a statement.
The financial services company said that the bank has a "critical role" in supporting Hungarian exports as well as the governmentʼs statutory guarantee of the bankʼs liabilities and the inclusion of losses on the bankʼs interest rate mismatches and supported loans in the governmentʼs budget, MTI added.
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.