The affirmation of the IDRs “reflects Fitchʼs unchanged view of the ability and propensity of [the banksʼ] respective parents… to provide support, in case of need,” according to the statement issued by the ratings agency.
Fitch also upgraded the banksʼ Viability Ratings (VRs) to ʼbb+ʼ from ʼbbʼ (K&H), to ʼb+ʼ from ʼbʼ (EBH) and to ʼbʼ from ʼb-ʼ (CIB).
The upgrades of the banksʼ VRs “reflect the stabilization of the operating and regulatory environments for Hungarian banks, resulting in decreased asset quality and profitability pressures,” Fitch added.
K&H Bank is owned by Belgiumʼs KBC, Erste Bank Hungary is a member of Austriaʼs Erste Group, and CIB Bankʼs parent is Italyʼs Intesa Sanpaolo.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
