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Fitch affirms MFB, Magyar Eximbank ratings with stable outlook

Fitch Ratings on Wednesday affirmed the "BBB" ratings of the state-owned Hungarian Development Bank (MFB) and Magyar Eximbank with stable outlooks, according to a report by state news wire MTI.

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The ratings "reflect Fitchʼs view of a high probability of extraordinary support for both banks from the Hungarian state", the rating agency said.

Fitch affirmed Hungaryʼs "BBB" sovereign rating with a stable outlook at a scheduled review in August.

State funding allocations and guarantees for the banks stand at HUF 3.6 trillion, equivalent to about 8% of Hungaryʼs forecast 2020 GDP, which Fitch called a "potentially significant contingent liability for the state". But it added that the guarantees at the banks have never been exercised and risks at both lenders "have been well-managed".