Ratings agency Moody’s Investors Service on Tuesday upgraded the long-term local currency deposit ratings of two Hungarian banks, according to news portal hvg.hu.
The credit ratings agency announced that it had raised K&H Bank’s long-term forint deposit rating from “Baa2” to “Baa1,” and changed its outlook from “stable” to “positive.”
The bank’s “Baa3” long-term and its “Prime-3” short-term foreign currency deposit ratings, its “Prime-2” short-term local currency deposit rating, its “Baa1” long-term local and foreign currency Counterparty Risk Rating (CRR), its “Baa2(cr)” long-term Counterparty Risk Assessment (CRA), as well as its “Prime-2” short-term CRR and “Prime-2(cr)” short-term CRA were affirmed.
The bank’s Baseline Credit Assessment (BCA) was also upgraded from “ba3” to “ba2,” while its adjusted BCA was upgraded from “ba1” to “baa3.”
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.
Article courtesy of the Budapest Business Journal
Original Article can be found on https://bbj.hu/finance/moodys-upgrades-kh-erste-bank_167282
