Mainly Positive Rating Actions Taken On Three Hungarian Banks Amid Diminishing Economic And Industry Risks

In our view, economic and industry risks for banks in Hungary are decreasing. The conversion of Hungarian households' foreign currency loans into local currency has reduced their debt burdens, and the demand for residential real estate is resuming. We are consequently raising our long-term ratings on OTP Bank PLC and its core subsidiary OTP Mortgage Bank to 'BB+' from 'BB'. Concurrently, we are affirming our 'BB/B' long- and short-term ratings on Magyar Takarekbank. The outlooks on all three banks are stable based on our view of limited room for bank- or industry-specific factors over the next 12 months. PARIS (S&P Global) July 21, 2016--S&P Global Ratings Services said today that it has raised its long-term foreign and local currency counterparty

...+ In our view, economic and industry risks for banks in Hungary are decreasing. + The conversion of Hungarian households' foreign currency loans into local currency has reduced their debt burdens, and the demand for residential real estate is resuming. + We are consequently raising our long-term ratings on OTP Bank PLC and its core subsidiary OTP Mortgage Bank to '##+' from '##'. Concurrently, we are affirming our '##/B' long- and short-term ratings on Magyar Takarekbank. + The outlooks on all three banks are stable based on our view of limited room for bank- or industry-specific factors over the next 12 months. PARIS (S&P Global) July 21, 2016--S&P Global Ratings Services said today that it has raised its long-term foreign and local currency counterparty credit ratings on Hungary-based OTP Bank PLC (OTP Bank) and its core subsidiary OTP Mortgage Bank (OTP Mortgage) to '##+' from '##'. At the same time, we affirmed our 'B' short-term foreign and local currency counterparty credit ratings...

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