Moody's Takes Rating Actions on Hungarian Banks
- 29 Sep 2021 8:49 AM
- Hungary Matters
Moody’s Investors Service on Tuesday said it took rating actions on six Hungarian banks, following the upgrade of Hungary’s sovereign rating to Baa2 from Baa3, with a stable outlook, on Friday.
Moody’s upgraded the long-term backed deposits and long-term backed senior debt ratings of the state-owned Hungarian Development Bank (MFB) to Baa2 from Baa3, with a stable outlook.
It upgraded the Counterparty Risk Assessment (CR Assessment) of OTP Bank, Hungary’s biggest commercial lender, to Baa1(cr) from Baa2(cr) and initiated a review for upgrade on the bank’s Baa1 long-term deposit ratings and its Baa1 long-term Counterparty Risk Ratings (CRR).
Other upgrades include OTP Jelzálogbank, OTP’s mortgage unit, Erste Bank Hungary, K&H Bank and Raiffeisen Bank.
“The upgrade of the backed long-term deposit and long-term senior debt ratings of MFB … reflect their alignment with the sovereign’s ratings given the government’s full ownership and direct, irrevocable and unconditional guarantee of MFB’s liabilities,” Moody’s said.
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