In its rating rationale, Moody’s acknowledged OTP’s diverse revenue and assets composition, noting that two-thirds of the lender’s operations were outside Hungary and provided “significant growth opportunities.
OTP’s credit profile further benefits from its strong profitability, which we expect will remain robust, despite the headwinds to its high net interest margin due to the decline in interest rates mainly affecting OTP’s operations in the euro area and euro-linked countries,” Moody’s said.
The negative outlook on OTP’s senior unsecured debt rating is driven by the negative outlook on Hungary’s sovereign rating, it added.
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