The international ratings agency said in London on Tuesday that it upgraded the long-term ratings of MFB and Eximbank by one notch to “BBB-” from “BB+”. It also upgraded by one notch the long-term ratings of Erste Bank Hungary and K&H Bank to “BBB” from “BBB-“, affirming the rating of CIB Bank at “BBB-“.
All ratings are on stable outlooks.
The ratings actions follow the upgrade of Hungaryʼs long-term issuer default rating (IDR) to “BBB-” from “BB+” with a stable outlook, announced on May 20, Fitch Ratings said.
The upgrades of state-owned MFB and Eximbank reflect the improved ability of the government to provide extraordinary support, in case of need, as reflected in the upgrade of Hungaryʼs long-term rating, while the propensity to support both banks remains strong, Fitch said.
The upgrades of K&H and Erste Bank Hungary are driven by the upgrade of the Hungarian sovereign and Fitchʼs unchanged view of the ability and propensity of their respective parents – KBC Bank and Erste Group Bank AG to provide support, it added.
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