On April 6, 2009, Standard&Poor's Ratings Services lowered its long-term counterparty credit rating on Hungary-based Magyar Takarékszövetkezeti Bank Rt. (Takarekbank; Bank of Hungarian Savings Cooperatives Co. Ltd.) to 'BB' from 'BB+'. The 'B' short-term counterparty credit rating was affirmed. The outlook is negative. The downgrade reflects our concerns about accelerating economic contraction and industry risk in the Republic of Hungary. This rating action follows our downgrade of Hungary to BBB-/Negative/A-3 from BBB/Negative/A-3. (See "Republic of Hungary Long-Term Ratings Cut To 'BBB-' On Deteriorating Economy; Outlook Negative," published on RatingDirect on March 30, 2008. Our current ratings take into account the possibility of a 6% decline in the Hungarian economy in 2009, which increases the likelihood of severe repercussions
