Moody’s Puts FHB On Review For Downgrade

  • 23 Jun 2016 9:00 AM
Moody’s Puts FHB On Review For Downgrade
Moody’s Investors Service has placed FHB Mortgage Bank’s baseline credit assessment, long-term deposit ratings and long-term counterparty risk assessment under review for downgrade. “This rating action reflects the increased risks to the bank’s solvency and business prospects following continued sizable losses during Q1 2016 as well as the recent measures taken by the Hungarian authorities, including the bank’s involvement in a police investigation and imposing fines on the bank for previous market misconduct by the central bank,” Moody’s said.

“The rating action also reflects Moody’s concerns about the effects of negative publicity on the bank’s franchise,” it added.

Moody’s noted that FHB was fined 105 million forints early in June for misleading markets in relation to a sale of eurobonds in 2012.

The bank was also involved in a police investigation, the details of which have not been disclosed, it added.

Republished with permission of Hungary Matters, MTI’s daily newsletter.

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