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.
ADVERTISEMENT
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 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.