Fitch Ratings has upgraded the credit ratings of Hungarian banks following the recently announced upgrade of the countryʼs sovereign debtor rating, MTI has reported.
The international ratings agency said that it has upgraded the long-term ratings of MFB and Eximbank by one notch to "BBB-" from "BB+".
It also upgraded by one notch the long-term ratings of Erste Bank Hungary and K&H Bank to "BBB" from "BBB-", affirming the rating of CIB Bank at "BBB-". All ratings are on stable outlooks.
The ratings actions follow the upgrade of Hungaryʼs long-term issuer default rating (IDR) to "BBB-" from "BB+" with a stable outlook.
The upgrades of state-owned MFB and Eximbank reflect the improved ability of the government to provide extraordinary support, in case of need, as reflected in the upgrade of Hungaryʼs long-term rating, while the propensity to support both banks remains strong, Fitch said.
The upgrades of K&H and Erste Bank Hungary are driven by the upgrade of the Hungarian sovereign and Fitchʼs unchanged view of the ability and propensity of their respective parents - KBC Bank and Erste Group Bank AG to provide support, it added.