S&P ups OTP Bank

Standard & Poor's said it raised its long- and short-term counterparty credit ratings on OTP Bank plc and its core subsidiary, OTP Mortgage Bank, to BBB-/A-3 from BB+/B.

The outlook is negative.

The bank's business and financial profiles have demonstrated strong resilience to the severe economic recession across most of the markets in which it operates, S&P said.

The agency also noted signs that economic prospects are improving in the bank's key markets and that there has been a material positive turnaround in the group's performance in Russia and Ukraine in 2010.

The ratings are supported by its strong domestic retail franchise, particularly its solid granular retail deposit base and leading position in residential mortgage loans, S&P said.

Constraining factors include the bank's ongoing asset quality and earnings pressure, the agency said.

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