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Fitch affirms support ratings of Hungary's OTP and MKB

International credit rating agency Fitch Ratings has affirmed the Support Rating of Hungary's OTP Bank at ‘2’ and the Support Rating of MKB Bank at ‘1’, Fitch announced late on Thursday.

As Fitch does not conduct full credit reviews of the two banks, the agency has only assigned Support Ratings.

OTP's Support Rating reflects Fitch's view on its systemic importance to the domestic banking system and the high probability of support that would likely be forthcoming from the Republic of Hungary (‘BBB’/Negative) in case of need, the rating agency said in a press release. Fitch noted that OTP is the largest bank by total assets in Hungary with a dominant presence in the domestic retail market.

MKB's Support Rating takes account of Fitch's view of the extremely high probability of support from its 89.61pc shareholder, Bayerische Landesbank (BayernLB, rated ‘A+’/Stable), should such support be necessary. MKB is Hungary's fourth-largest bank with a total market share of 8% at end-2008. Its other shareholder is Austria's BAWAG. (MTI-ECONEWS)