On Tuesday, Moody’s released a new rating for five Hungarian banks, triggered by an improvement in the macroeconomic environment.
Moody’s changed the profile to “Moderate” from “Moderate-“.
Moody’s expects the fundamentals of Hungarian credit institutions to strengthen due to the significant growth potential of the Hungarian economy and the quality of banking assets.
The long-term deposit rating of Budapest Bank and MKB Bank was changed from Ba2 to Ba1, while the outlook remained positive. Raiffeisen Bank Zrt.’s long-term deposit ratings have been improved from Baa2 to Baa1, and the outlook remains stable, while K&H and Erste Bank’s rating remained Baa1 with a stable outlook.
According to the credit rating agency, Hungarian real GDP growth could be 3.7 percent this year and 5.2 percent next year.
The agency notes that the positive macroeconomic environment will also support the asset quality of Hungarian banks, including the performance of a significant amount of loans participating in the payment moratorium extended until the end of September 2021.