Fitch Downgrades Hungarian Banks
- 16 Jan 2012 8:10 AM
"Fitch Ratings downgraded its rating of four Hungarian banks, as a consequence of its decision to reduce Hungarian state debt to junk status on January 6. Specifically, the long-term debt of CIB and K&H banks is lowered to “BBB”. Fitch also downgraded the support of the parent concerning CIB, K&H, Erste and Raiffeisen banks.
The negative outlooks assigned to CIB and K&H correspond to the negative outlook on Hungary, Fitch added.
The agency is maintaining a negative outlook for the banking sector in Hungary as a whole and will probably further downgrade CIB and K&H if the sovereign risk of the country is downgraded further.
The weakened grades reflect the high risk stemming from huge foreign-currency exposure, the economic recession and the large losses caused by the special taxes and the foreign-currency mortgage early repayment scheme, Fitch said."
Source: Hungary Around the Clock
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