Bulletin: Hungary Banking Industry Country Risk Assessment Unchanged On Evolving Industry Risks; No Ratings Affected

FRANKFURT (S&P Global Ratings) Jan. 24, 2025--Following a review of the Banking Industry Country Risk Assessment (BICRA) for Hungary (BBB-/Stable/A-3), S&P Global Ratings revised its industry risk score to '6' from '5'. We maintained our view of Hungary's BICRA group at '5', along with our anchor on banks operating only in Hungary at 'bbb-'. (Our BICRAs are on a scale of '1' to '10', with '1' denoting the lowest risk and '10' the highest.) The economic and industry risk trends remain stable. We could revise our industry risk score further down if we observe increasing governmental interference in banking supervision that results in weaker standards and a lack of proactive measures to protect the banking system's stability. This scenario could

...To From BICRA group 5 5 Trend Stable Stable Economic risk 5 5 Economic resilience 3 (Intermediate risk) 3 (Intermediate risk) Economic imbalances 4 (High risk) 4 (High risk) Credit risk in the economy 3 (Intermediate risk) 3 (Intermediate risk) Trend Stable Stable Industry risk 6 5 Institutional framework 4 (High risk) 3 (Intermediate risk) Competitive dynamics 4 (High risk) 4 (High risk) Systemwide funding 3 (Intermediate risk) 3 (Intermediate risk)...

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