Moody’s justified the change in outlook citing OTP’s recent agreement to purchase 100pc of Luminor Holding, a peer in the Baltic region.
Moody’s notes that Luminor Holding is the parent company of Luminor Bank, the third largest bank on the Latvian and Lithuanian markets and the fourth largest bank on the Estonian market.
According to the ratings agency’s calculations, OTP’s assets will grow by 13% and its euro zone asset exposure will increase to close to 50% from the current 40% as a result of the acquisition.
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