Moody’s downgrades five Hungarian banks
Moody’s Investors Service said late Friday it downgraded the deposit and debt ratings of Budapest Bank, K&H Bank, FHB Mortgage Bank, Erste Bank Hungary and MKB Bank.
All of the banks’ ratings carry a negative outlook, Moody’s said.
Moody’s said it downgraded the standalone ratings of K and H Bank, FHB Mortgage Bank, Erste Bank Hungary and MKB Bank. At the same time, it lowered the parental support uplift in the deposit ratings for foreign-owned K&H Bank and Budapest Bank.
The rating actions reflect a quicker than expected deterioration in asset quality, an increased pressure on profitability and capital, in part due to an early forex mortgage repayment scheme, and a risk of a weakening in the parent banks’ commitment to their Hungarian operations.
Moody’s said it confirmed the local-currency and foreign-currency deposit ratings of OTP Bank and OTP Mortgage Bank. It also confirmed the foreign-currency debt ratings of OTP Bank. A negative outlook is assigned to all of the ratings, it added.
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