S&P revises OTP view to negative

S&P said it revised its outlook on OTP Bank plc to negative from stable and affirmed the BBB long-term issuer credit rating on the bank.

The negative outlook, indicating a possible downgrade within the next 24 months, follows a similar move on Hungary’s outlook, S&P said. OTP’s rating is capped by the agency’s rating on Hungary.

“Although the bank has a very diversified footprint in eastern Europe, we do not currently rate it above the sovereign because we doubt that it would survive a hypothetical sovereign default. In time, we could revise this stance if our modeling suggests that its resilience has substantially improved, whether aided by further diversification, stronger capitalization, or improved resolvability with associated stronger subordinated buffers,” S&P said in a press release.

© 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.