S&P lifts OTP Bank, OTP Mortgage Bank

S&P said it raised the resolution counterparty ratings on OTP Bank and OTP Mortgage Bank to BBB/A-2 and affirmed the BBB-/A-3 issuer credit ratings.

The outlook is stable.

S&P said it affirmed the BBB-/A-3 long- and short-term issuer credit ratings on both banks.

The upgrade reflects a view of sound growth prospects in the country, supported by high private savings and real wage gains sustaining domestic demand, the agency said, as well as the ongoing expansion of export capacity in the automotive and services sectors.

The bank continues to benefit from its dominant competitive position in Hungary, geographic diversity of foreign operations, sound capitalization and improving asset quality metrics, S&P said.

Its funding and liquidity profile remains strong thanks to the granular and largely retail-oriented funding base with a high level of liquid assets, the agency said.

The stable outlook reflects the sound economic and industry risk environment in Hungary and stabilization of the risks in foreign operations.

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