Moodyʼs said the upgrade reflects the ongoing improvement in the bankʼs financial fundamentals and the high likelihood of support from Belgian KBC Bank, according to Hungarian news agency MTI. The financial fundamentals of the bank are expected to remain broadly stable over the next 12-18 months, it added.
The Hungarian unit of Austrian lender Erste Bank also received the same ratings.
Erste Bank Hungaryʼs upgrade was driven by a stronger balance sheet and the high likelihood of support from the bankʼs foreign parent Erste Group Bank, MTI cited Moodyʼs as saying. The change of outlook on the long-term local currency deposit rating reflects Moodyʼs expectation that the bankʼs financial fundamentals, mainly its asset quality, capital and funding, will remain broadly stable over the next 12-18 months, it added.