According to the Moody’s press statement, the following banks are affected by todayʼs rating actions:
The upgrade of government-owned MFBʼs backed long-term foreign currency debt rating from Ba1 to Baa3 with a stable outlook is driven by the upgrade of the Hungarian governmentʼs debt rating from Ba1 to Baa3. Moodyʼs continues to assume a very high probability of support from the Hungarian government for MFB, reflected in the framework of explicit and irrevocable state guarantees for the bankʼs liabilities, the press statement said.
The upgrade of OTPʼs long-term foreign currency deposit ratings from Ba2 to Baa3 with a stable outlook, and short-term foreign currency deposit ratings from Not Prime to Prime-3, is driven by Moodyʼs raising of Hungaryʼs country ceiling for long-term foreign currency deposits from Ba2 to Baa3, Moody’s said. The positive outlook on OTPʼs Baa3 long-term local currency deposit rating, which is driven by the upward pressure on the bankʼs standalone baseline credit assessment (BCA), is not translated to the long-term foreign currency deposit rating as the latter will be constrained by the respective country ceiling and will not be affected by a potential upgrade of the bankʼs BCA and local currency deposit rating, Moody’s added.
The upgrade of OTP Mortgage Bankʼs long-term and short-term CRA to Baa2(cr)/Prime-2(cr), up from Baa3(cr)/Prime-3(cr), is driven by the upgrade of its parent OTPʼs CRA, reflecting the high level of integration, the full ownership and the guarantee from the parent, Moody’s said. OTP fully, irrevocably and unconditionally guarantees all of OTP Mortgage Bankʼs unsubordinated obligations, Moody’s noted, adding that consequently, the CRA of OTP Mortgage Bank is at the same level as that of OTP.
The upgrade of K&Hʼs long-term foreign currency deposit rating from Ba2 to Ba1 with a stable outlook is driven by Moodyʼs raising of Hungaryʼs country ceiling for long-term foreign currency deposits from Ba2 to Baa3, according to Moody’s. The Ba1 rating is at the same level as K&Hʼs local currency deposit rating and is no longer constrained by the country ceiling, the press statement added.
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