S&P lowers OTP

S&P said it downgraded OTP Bank plc and its subsidiary OTP Mortgage Bank ratings to BBB- from BBB.

On Friday, the agency lowered Hungary’s rating to BBB- from BBB.

“We continue to cap our issuer credit ratings on OTP Bank at the level of our foreign currency sovereign ratings on Hungary because we consider it unlikely that the bank would have sufficient capital resources to withstand a hypothetical sovereign default scenario and avoid a default on its senior preferred instruments,” the agency said in a press release.

The outlook is stable.

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