OTP Bank upgraded by S&P

S+P Global Ratings on Monday raised its long- and short-term issuer credit ratings on OTP Bank and OTP Mortgage Bank to ‘BBB/A-2’ from ‘BBB-/A-3’ on higher resilience against potential sovereign stress.

S+P revised the outlook on both banks to negative from stable. S+P said OTP Bank’s ratings were raised one notch over Hungary’s sovereign rating in light of the lender’s expansion abroad and reduced exposure to country risk in Hungary. The share of the Hungarian loan book has fallen to 32pc of the total portfolio, it added.

The negative outlook mirrors the negative outlook on the sovereign as well as S+P’s assessment that OTP Bank‘s asset quality and financial performance could be adversely affected by rising economic and geopolitical challenges that could affect core markets.

As we wrote earlier, the freeze on bank charges in Hungary was finalised, and OTP Bank was the first to reduce retail charges, details HERE.