Are you sure?

Moody's lowers some of OTP Bank's ratings

Moody’s Investors Service affirmed OTP Bank’s standalone BFSR at D+ with stable outlook, given that the Bank has proved itself resilient in the face of the crisis and showed the benefits of the diversification, OTP announced on Tuesday.

The bank’s foreign-currency deposit ratings were affirmed at Baa3.

Simultaneously Moody’s has lowered the Bank’s local currency deposit ratings and foreign currency senior debt rating to Baa3 in line with the sovereign ratings. The Bank’s subordinated debt (LT2) rating has been changed to Ba1 and its junior subordinated debt (UT2) rating to Ba2 (hyb).

The outlook on BFSR is stable, while all other ratings carry negative outlook similarly to the sovereign, OTP said.

The rating action affected OTP Mortgage Bank, Dow Jones reported.

Parallel with the above moves, Moody's Investors Service has downgraded the standalone bank financial strength ratings (BFSRs) of other Hungarian banks, which has resulted in the downgrade of those banks' deposit and debt ratings, Dow Jones said. These banks are: K&H Bank, Budapest Bank, FHB Mortgage Bank, Erste Bank Hungary and MKB Bank.