S&P assigns ’BBB’ rating to Takarék Mortgage Bank bonds

Ratings

S&P Global Ratings said last Thursday it has assigned "BBB" foreign and local currency credit ratings to Takarék Mortgage Bankʼs mortgage-covered bond program and all outstanding covered bond issuances, state news wire MTI reported.

"From our analysis of the legal and regulatory framework for Hungarian covered bonds, we concluded that the assets in the cover pool are isolated from the issuerʼs insolvency risk. The asset isolation allows us to rate the covered bond program above our assessment of [Takarék Mortgage Bankʼs] creditworthiness," S&P said.

"The outlook on the covered bond ratings is stable, and reflects the stable outlook on our long-term ʼBBBʼ rating on Hungary," the ratings agency added.  

In a separate statement posted on the website of the Budapest Stock Exchange (BÉT) after market closing on Friday, Takarék Mortgage Bank said it has unilaterally terminated its agreement with Moodyʼs on rating its mortgage bonds, effective March 31, 2019, and would rely on S&P for the service in future.

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75% MNB

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%

Bulgaria's Household Income, Spending Rise 20% in 2023 World

Bulgaria's Household Income, Spending Rise 20% in 2023

Spar Magyarország Revenue Climbs Close to 16% in 2023 Retail

Spar Magyarország Revenue Climbs Close to 16% in 2023

Hungary Launches HUF 15 bln Tourism Sector Support Program Tourism

Hungary Launches HUF 15 bln Tourism Sector Support Program

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.