S&P raises ratings of OTP, OTP Mortgage Bank
S&P Global Ratings on Tuesday said it raised its long and short-term resolution counterparty ratings (RCRs) on Hungaryʼs OTP Bank and its unit OTP Mortgage Bank from "BBB-/A-3" to "BBB/A-2," state news agency MTI reported.
At the same time, S&P affirmed its "BBB-/A-3" long and short-term issuer credit ratings (ICRs) on both banks. The outlook remains stable.
The ratings action followed an upgrade of Hungaryʼs sovereign rating from "BBB-" to "BBB" on Friday, driven by "sound growth prospects in the country, supported by high private savings and real wage gains sustaining domestic demand, as well as the ongoing expansion of export capacity in the automotive and services sectors."
"We now see a lower risk of OTP Bankʼs default on senior liabilities that may be protected with an effective bail-in resolution process," S&P said.
"OTP continues to benefit from its dominant competitive position in Hungary, geographic diversity of foreign operations, sound capitalization, and improving asset quality metrics," the ratings agency added.
ADVERTISEMENT
Minister Asks Banks to Introduce Voluntary Rate Caps
Gov't Raises 2023 Deficit Target to 5.2% of GDP
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.
