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Moody’s upgrades MKB deposit ratings

Moody’s Investors Service says it has upgraded the long-term local and foreign currency deposit ratings of Hungary’s MKB Bank from "B2" to "B1," according to a press release sent to the Budapest Business Journal.

The upgrade "reflects the continued restructuring of the bank in preparation for its intended initial public offering towards year-end 2019, evidenced primarily by strengthening of its solvency through the ongoing reduction in problem loans and rising capital buffers," Moody’s said.

The ratings agency noted that MKB’s ratio of problem loans to gross loans had declined to 8.8% in December 2018, from 30.1% in December 2015. Moody’s added that it "expects further improvement in the bank’s asset quality, reflecting MKB’s resumed loan growth and the positive macroeconomic environment in Hungary."