Moody's affirms OTP Bank

Moody's Interfax Rating Agency said it affirmed the Aa1.ru long-term national-scale credit rating of OJSC OTP Bank.

OTP Bank's Aa1.ru national-scale rating continues to map to the Ba1 long-term local-currency rating assigned by Moody's Investors Service which incorporates the standalone D- BFSR and a very high probability of parental support from OTP Bank (Hungary), the agency said.

Moody's Investors Service upgraded the bank financial strength rating of OJSC OTP Bank (Russia) to D-, mapping to Ba3 on the long-term scale, from E+, mapping to B1 on the long-term scale. The outlook is stable.

S&P also affirmed the long-term and short-term local- and foreign-currency deposit ratings at Ba1/Non-prime. The outlook on the long-term ratings remains negative.

The upgrade of OTP Bank (Russia)'s BFSR to D- is based on the improved market positions and diversification of business supported by good access to funding in crisis times and development of risk models and seasoning of business in Russia, which has resulted in improved and more sustainable risk-adjusted profitability due to a decline in risk costs and improved cost efficiency, the agency said.

OTP Bank (Russia)'s Ba1 deposit ratings incorporate a very high probability of parental support from OTP Bank (Hungary), the agency added.

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