Fitch withdraws support ratings of Hungarian banks
The credit-rating company Fitch Ratings announced yesterday that it will no longer provide Support Ratings of four CEE banks, including Hungary-based OTP Bank Plc. and MKB Bank Zrt.
Apparently squeezed by competition, Fitch explained that, from now on, they would only rate banks who are willing to pay for the service.
At the end of Q1 this year, OTP was the largest bank in Hungary accounting for 27% of sector assets and 25% of deposits. Based on its Fitch Support Rating of 3, there is a moderate probability that the Hungarian sovereign state (BB+/Stable) would support the bank if necessary.
As long as Bayerische Landesbank (A+/Negative) remains the majority owner of MKB (Fitch Support Rating of 2), Fitch analysts determined that there is a high probability the former would support the latter.
Due to the global financial and economic crisis, and increasing competition, credit rating agencies face shrinking profit margins, a factor that apparenty impacted Fitch’s decision.
Avg Hourly Pay Rate for Blue-collar Workers Climbs 16% in Q1
Bulgaria's Household Income, Spending Rise 20% in 2023
Job Fair and Career Prep at Corvinus Starts Tomorrow
Spago Budapest Offering Unique Sunday Brunch Experience
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
