Bulletin: Lower-Than-Expected Credit Losses Are Supportive For Hungary's Banks: BICRA Group Remains '5'

FRANKFURT (S&P Global Ratings) July 19, 2023--S&P Global Ratings today said that credit losses for the Hungarian banks are likely to be lower than we originally expected, supporting banks' resilience amid the economic slowdown. Following a review of our Banking Industry Country Risk Assessment we have maintained Hungary in group '5' and we now view trends on both the economic risk and industry risk as stable. Our BICRAs are on a scale of '1' to '10', with '1' denoting the lowest risk and '10' the highest. Our revision of the economic risk trend did not affect the ratings on any of our rated banks. Government interventions in recent years have included the following measures: The introduction of one-off windfall taxes

...To From BICRA group 5 5 Government support Uncertain Uncertain Economic risk 5 5 Economic resilience Medium risk Medium risk Economic imbalances High risk High risk Credit risk in the economy Intermediate risk Intermediate risk Economic risk trend Stable Negative Industry risk 5 5 Institutional framework Indermediate Intermediate Competitive dynamics High risk High risk Systemwide funding Intermediate risk Intermediate risk Industry risk trend Stable Stable...

Bulletin