Fitch Ratings has upgraded the l-t IDRs of Kereskedelmi es Hitelbank Zrt. (K&H) and Erste Bank Hungary Zrt. (EBH) to ‘BBB+’ from ‘BBB’, and the l-t IDRs of MFB Hungarian Development Bank Private Limited Company’s (MFB) and Hungarian Export Import Bank Private Limited Company’s (Hexim) to ‘BBB’ from ‘BBB-‘.
The Outlooks on all of these ratings are Stable.
The upgrade of IDRs follows Fitch’s upgrade of Hungary’s IDR to ‘BBB’ from ‘BBB-‘ on 22 February 2019.
The IDRs of the four banks and senior debt ratings of Hexim and MFB are sensitive to changes in the Hungarian sovereign rating, said Fitch.
“Hexim’s and MFB’s ratings are also sensitive to the state’s willingness to support them, which Fitch believes is unlikely to change in the foreseeable future.
“The IDRs of K&H and EBH could be upgraded if Fitch’s perception of country risks facing the Hungarian banks changes. Country risks are currently reflected in the one notch cap above the sovereign IDR.”
Standard & Poor’s has also just raised its foreign and local currency issuer credit ratings on Hungary’s Export-Import Bank (Eximbank) to ‘BBB/A-2’ from ‘BBB-/A-3’. The outlook is stable.
S&P upgrades Hungary´s Eximbank