OTP Bank PLC Outlook Revised To Negative After Similar Action on Hungary; Ratings Affirmed

On Aug. 12, 2022, S&P Global Ratings revised its outlook on Hungary to negative from stable because external risks, including potential cuts to EU funds and reduced gas flows, could weigh on the country's growth prospects and endanger post-pandemic fiscal consolidation. We continue to cap our issuer credit rating on OTP Bank at the level of our foreign currency sovereign ratings on Hungary, because we doubt that the bank would have sufficient capital resources to absorb a hypothetical sovereign default scenario. We therefore revised our outlook to negative from stable and affirmed our 'BBB/A-2' ratings on OTP Bank. The negative outlook means we could downgrade OTP Bank by one notch within the next 24 months if we take a similar

...August 16, 2022 - On Aug. 12, 2022, S&P Global Ratings revised its outlook on Hungary to negative from stable because external risks, including potential cuts to EU funds and reduced gas flows, could weigh on the country's growth prospects and endanger post-pandemic fiscal consolidation. - We continue to cap our issuer credit rating on OTP Bank at the level of our foreign currency sovereign ratings on Hungary, because we doubt that the bank would have sufficient capital resources to absorb a hypothetical sovereign default scenario. - We therefore revised our outlook to negative from stable and affirmed our '###/A-2' ratings on OTP Bank. - The negative outlook means we could downgrade OTP Bank by one notch within the next 24 months if we take a similar action on the sovereign. FRANKFURT (S&P Global Ratings) Aug. 16, 2022--S&P Global Ratings today revised its outlooks on OTP Bank PLC and its core subsidiary OTP Mortgage Bank to negative from stable. At the same time, we affirmed our '###'...

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