Ratings On Two Hungarian Banks Affirmed On Reduced Economic Risk

We consider that Hungary's economy has weathered the pandemic well and demonstrated increased economic resilience, as highlighted by the country's rising income levels and improved economic prospects. We project real GDP growth of over 6% in 2021 and over 5% in 2022, which we expect will reduce economic risk for Hungarian banks and be supportive for their domestic operations. While this reflects positively on the overall creditworthiness of OTP Bank PLC, we affirmed our 'BBB/A-2' ratings on the bank and its core subsidiary OTP Mortgage Bank, given that we continue to cap our ratings at the level of our foreign currency sovereign rating on Hungary (BBB/Stable/A-2). The outlook on both banks remains stable. FRANKFURT (S&P Global Ratings) Aug. 18, 2021--S&P

...August 18, 2021 - We consider that Hungary's economy has weathered the pandemic well and demonstrated increased economic resilience, as highlighted by the country's rising income levels and improved economic prospects. - We project real GDP growth of over 6% in 2021 and over 5% in 2022, which we expect will reduce economic risk for Hungarian banks and be supportive for their domestic operations. - While this reflects positively on the overall creditworthiness of OTP Bank PLC, we affirmed our '###/A-2' ratings on the bank and its core subsidiary OTP Mortgage Bank, given that we continue to cap our ratings at the level of our foreign currency sovereign rating on Hungary (###/Stable/A-2). The outlook on both banks remains stable. FRANKFURT (S&P Global Ratings) Aug. 18, 2021--S&P Global Ratings today affirmed its '###/A-2' long- and short-term issuer credit ratings on OTP Bank PLC and OTP Mortgage Bank. The outlooks on both banks remains stable. Hungarian MTB Magyar Takarekszovetkezeti Bank...

Ratings Action