Moodyʼs takes rating actions on six Hungarian banks
Ratings agency Moodyʼs said late yesterday that it took rating actions on six Hungarian banks, prompted by the outlook change to Hungaryʼs sovereign rating from "stable" to "positive" on Friday, last week, Hungarian news agency MTI reported today.
Moodyʼs also changed Hungaryʼs Macro Profile to "Weak+" from "Weak", driven by the improvement in the Hungarian banksʼ operating environment, in particular the countryʼs economic strength. The strengthening of the Macro Profile has led Moodyʼs to review all Hungarian banksʼ financial factors and standalone credit profiles, reflected in rating actions on selected banksʼ standalone baseline credit assessment (BCA) and ratings, Moodyʼs said.
Moodyʼs changed the outlook for the state-owned Hungarian Development Bank (MFB) to "positive" from "stable" and affirmed the creditorʼs long-term foreign currency debt and deposit ratings at Ba1 and Ba2, respectively.
It changed the outlook for the Ba2 long-term foreign currency deposit ratings of OTP Bank, Hungaryʼs biggest commercial lender, from "stable" to "positive".
It upgraded by one notch Erste Bank Hungaryʼs long-term deposit ratings to B2, long-term Counterparty Risk Assessment (CRA) to Ba2(cr), the baseline credit assessment to caa1 and the adjusted BCA to b2. The outlook on the long-term deposit ratings remains stable.
Moodyʼs affirmed the "stable" outlook for K and H Bankʼs Ba3 long-term deposit ratings, its long-term and short-term CRA at Baa3(cr)/Prime-3(cr), and its BCA and adjusted BCA at b2 and ba3, respectively.
It affirmed with a "stable" outlook Budapest Bankʼs B2 long-term deposit ratings, its long- and short-term CRA at Ba3(cr)/Not-Prime(cr), and its BCA and adjusted BCA at b2, respectively.
The ratings and outlook of other Moodyʼs rated Hungarian banks, such as MKB Bank and FHB Mortgage Bank, are unaffected by the actions, Moodyʼs said.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.