Moody's cuts 7 Hungarian bank long-term ratings to A2 after sovereign downgrade

Moody's Investors Service said it has downgraded the long-term foreign currency deposit ratings of seven Hungarian banks to A2 after the downgrade of Hungary's sovereign ratings on Dec 22.

Budapest Bank, Kereskedelmi & Hitel Bank (K&H), MKB Bank, OTP Bank, OTP Jelzalogbank (OTP Mortgage Bank), Central-European International Bank (CIB) and Hungarian Development Bank ('MFB') have been downgraded to A2 from A1, the ratings agency said.

The foreign currency short-term bank deposit ratings of these banks have been affirmed at P-1.

The A2/P-1 foreign currency long-term and short-term bank deposit ratings of FHB Bank were placed on review for possible downgrade -- from direction uncertain -- pending the outcome of its privatisation, said Moody's.

The A2 long-term foreign currency deposit rating of Erste Bank Hungary was not affected.

On Dec 22, Moody's had cut Hungary's local and foreign currency government bond ratings and its foreign currency bank deposit ceiling to A2.

The Aa1 foreign currency country ceiling for bonds, the Aaa local currency deposit ceiling and the Aaa local currency country ceiling were unaffected by the Dec 22 downgrade.

Source: forbes.com