Bulletin: Hungary's Banking Industry Country Risk: Rising House Prices Balanced By Growing Wealth

FRANKFURT (S&P Global Ratings) Sept. 3, 2019--S&P Global Ratings sees increasing economic imbalances in Hungary stemming from rapid growth of house prices, but believes this is offset by falling credit risk in the economy because of steady increases in per capita wealth. Our group classification for the Hungary Banking Industry Country Risk Assessment (BICRA) remains unchanged at '6' after our recent review. The Hungary BICRA scores for economic risk and industry risk also remain unchanged, both at '6'. In addition, we continue to see stable trends for both economic risk and industry risk. No ratings were affected by our review. Of the factors contributing to our assessment of economic risk, we have revised our assessment of economic imbalances to high

...FRANKFURT (S&P Global Ratings) Sept. 3, 2019--S&P Global Ratings sees increasing economic imbalances in Hungary stemming from rapid growth of house prices, but believes this is offset by falling credit risk in the economy because of steady increases in per capita wealth. Our group classification for the Hungary Banking Industry Country Risk Assessment (BICRA) remains unchanged at '6' after our recent review. The Hungary BICRA scores for economic risk and industry risk also remain unchanged, both at '6'. In addition, we continue to see stable trends for both economic risk and industry risk. No ratings were affected by our review. Of the factors contributing to our assessment of economic risk, we have revised our assessment of economic imbalances to high risk from intermediate risk. This reflects rising risks of economic imbalances from unabated house price growth, with nominal house prices increasing by 56% (44% in real terms) between first quarter 2016 and first quarter 2019. We expect...

Bulletin