Moody's rates OTP Bank notes Ba1

Moody's Investors Service said it assigned a provisional Ba1 foreign-currency rating to subordinated notes to be issued by Hungary's OTP Bank NyRt.

The agency said it placed on review for upgrade the bank's Baa2 long-term local-currency deposit ratings.

The agency also said it affirmed the bank's prime-2 short-term local-currency deposit rating and its Baa3 long-term and prime-3 short-term foreign-currency deposit ratings, as well as the bank's long- and short-term Baa2(cr)/prime-2(cr) counterparty risk assessments and its Baa1/prime-2 long- and short-term local- and foreign-currency counterparty risk ratings.

The agency also said it placed on review for upgrade OTP Jelzalogbank Zrt's (OTP Mortgage Bank) Baa3 backed issuer rating and affirmed the bank's long- and short-term Baa2(cr)/prime-2(cr) counterparty risk ratings and Baa1/prime-2 long- and short-term local- and foreign-currency ratings.

The review was prompted by OTP Bank's planned issue of subordinated notes, which will increase the loss absorption buffers for OTP Bank's depositors and senior creditors and could result in a higher uplift in its deposit ratings under Moody's advanced loss given failure analysis, Moody's said.

The notes constitute direct and unsecured obligations of the bank, are subordinated to the claims of the bank's senior creditors and rank pari passu among themselves and any other subordinated claims of OTP Bank, which qualify as tier 2 capital, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.