Moody's: Negative outlook for Hungary's bank sector

MNB

Moody's Investors Service left its outlook for Hungary's Ba1-rated banking system at negative, the ratings agency reported late last week.

Leaving the outlook unchanged "reflects continued credit risks for the banks stemming from the negative pressure on their asset quality, profitability and capitalization", Moody's added, also noting banks' significant exposure to wholesale and foreign-currency funding. Moody's pointed out that problem loans are expected to continue growing as a share of total loans from 21.3% at the end of March, although at a slower pace.

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