Fitch Ratings on Wednesday said it affirmed the individual ratings of Hungary’s CIB Bank and K&H Bank.
“The affirmation of the Individual Ratings reflect Fitch’s expectation that the performance of both banks will remain subdued, due to elevated loan impairment charges, persistently weak demand for new credit and the special bank levy,” Fitch said.
Fitch said bad debts have not yet peaked at both banks but it expects the inflow of NPLs to subside towards the end of 2011. At the end of the first quarter, NPLs represented 22% of CIB’s and 9% of K&H’s gross loans.
CIB’s long-term foreign currency IDR is ‘A-‘ with a stable outlook. K&H’s long-term foreign currency IDR is also ‘A-‘ with a stable outlook.
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