On Oct. 16, 2008, Standard&Poor's Ratings Services placed its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on Hungary-based OTP Bank Rt. (OTP) and OTP Mortgage Bank on CreditWatch with negative implications. This rating action follows the similar CreditWatch placement of the ratings on the Republic of Hungary (BBB+/Watch Neg/A-2) on Oct. 15, 2008, which in turn reflects our concerns over mounting financial-sector funding pressures and their potential to raise general government debt materially. It also reflects that OTP and other Hungary-based banks are facing sharply higher financing costs and reduced access to international markets as a result of growing macroeconomic risks from global financial turmoil and increasing risk aversion, which might have a negative effect on international
