Are you sure?

OTP Bank unaffected by Hungary downgrade

OTP Bank, Hungary's biggest commercial bank, will not be affected by a downgrade of the country's sovereign rating because it does not need to borrow money abroad in the next two years, CEO of OTP Bank's Romanian unit László Diósi told Bloomberg.

Moody's Investors Service cut Hungary's rating by two notches to Baa3 on Monday because of “increased concerns about the country's medium- to long-term fiscal sustainability and higher external vulnerabilities than most of Hungary's rated peers.”

OTP Bank has a “strong liquidity base” to support its activity and plans until 2012, Diósi said.

“OTP Group has high liquidity reserves and we don’t have to go out to the markets in the next two years due to our robust liquidity reserves as our capital-adequacy ratio is 18%,” Diósi said. “In Romania, we plan to keep our exposure and grow lending in line with the market as our investments will increase more than 10%.” (MTI – Econews)