Economy
Moody's upgrades Hungary's MKB Bank
The stable outlook reflecs Moody’s view that the MKB’s ratings will be balanced the next 12 to 18 months. The following ratings have been upgraded:
Moody's noted that “a further reduction in problem loans while improving profitability and capitalisation could positively affect MKB's ratings, while a downward rating pressure could emerge if the bank's asset quality, profitability and capital adequacy deteriorate noticeably."
- Adjusted Baseline Credit Assessment, upgraded to caa1 from caa2
- Baseline Credit Assessment, upgraded to caa1 from caa2;
- Long-term Counterparty Risk Assessment, upgraded to B1(cr) from B2(cr);
- Long-term Bank Deposits (Local & Foreign Currency), upgraded to B2 Stable from B3 Stable
Moody's noted that “a further reduction in problem loans while improving profitability and capitalisation could positively affect MKB's ratings, while a downward rating pressure could emerge if the bank's asset quality, profitability and capital adequacy deteriorate noticeably."
