Moody’s takes rating action on Hungarian banks
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Moody’s Investors Service said on Tuesday it had taken rating action on six Hungarian banks, following Hungary’s sovereign rating upgrade to Baa2 instead of Baa3, with a stable outlook, MTI reported.
Moody’s raised the ratings of the Hungarian Development Bank’s (MFB) long-term backed deposits and senior backed long-term debt to Baa2 instead of Baa3, with a stable outlook.
The agency raised the counterparty risk assessment (CR assessment) of OTP Bank, Hungary’s largest commercial lender, to Baa1 (cr) from Baa2 (cr) and launched a review for a revaluation the bank’s Baa1 long-term deposit ratings and its Baa1-term long-term deposit ratings Counterparty Risk Ratings (CRR).
Moody’s also upgraded the CR rating of OTP Jelzálogbank, OTP’s mortgage unit, from Baa1 (cr) to Baa2 (cr) and launched a review to upgrade its long-term CRR Baa1.
The agency also upgraded the long-term CRRs of Erste Bank Hungary, K&H Bank and Raiffeisen Bank to A3 from Baa1 and their long-term CR ratings to Baa1 (cr) from Baa2 (cr).
“The upgrading of the MFB’s long-term backed deposit and senior long-term debt ratings (…) reflects their alignment with sovereign ratings given full government ownership and the direct, irrevocable and guaranteed guarantee. unconditional liability of the MFB, “Moody’s said in its rationale for the actions.
The upgrading of the CR and CRR ratings of OTP, OTP Jelzálogbank, Erste Bank Hungary, K&H Bank and Raiffeisen Bank “was prompted by the sovereign recovery in Baa2, which lifted the constraints on these evaluations and ratings against the government rating, ”he added.
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