Moody’s cited the bank group’s continued strong financial performance and its leading role in Hungary and several neighbouring markets.
The agency said it also upgraded the outlook on the same rating of OTP Mortgage Bank to stable from negative.
At the same time, Moody’s upgraded OTP’s Baseline Credit Assessment (BCA) and adjusted BCA by one notch to Baa3 from Ba1, and upgraded the bank’s long-term Counterparty Risk Rating (CRR) to A3 from Baa1. Moody’s also affirmed OTP Mortgage Bank’s, OTP’s wholly owned subsidiary, Baa3-backed long-term issuer rating and changed the outlook to stable from negative.
OTP MB’s long-term CRRs were upgraded to A3 from Baa1. The upgrade of OTP’s BCA to baa3 from ba1 reflects the bank’s consistently strong financial performance supported by its leading franchise in Hungary as well as in several Central and Southern Eastern European countries.
OTP’s widely diversified operations provide significant growth opportunities and enabled improvements in its profitability and capitalization, alongside a steady improvement in its asset quality.
Moody’s noted the NPL rate declining to 3.4% in the first half of 2025 from 4.7% in H1 2023 and a 2.4% return on assets for the first six months of 2025.
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