Moody's upgrades Erste Bank Hungary

Today's rating action was possible because Erste Bank Hungary had previously issued bonds to its parent bank, Erste Group Bank of Austria, and the market, thereby satisfying the MREL requirements, which could greatly reduce depositors' losses in the event of bankruptcy.

The rating agency's rationale for the affirmation of a stable outlook on the bank's long-term deposit ratings by the fact that Erste Hungary's stand-alone risk profile has not changed significantly in the recent past. The outlook is also consistent with the stable outlook on Hungary's ratings.