Moody's cuts eight Hungarian banks

Moody's Investors Service said it announced that it has downgraded to Baa1 from A3 the long-term foreign currency deposit ratings of the following eight Hungarian banks: OTP Bank, OTP Mortgage Bank, CIB Bank, Kereskedelmi & Hitel Bank, MKB Bank, Erste Bank Hungary, Budapest Bank and MFB Hungarian Development Bank.

The ratings have a negative outlook, except in the case of Erste Bank Hungary, where the Baa1 long-term foreign currency deposit rating was placed on review for possible downgrade, the agency said.

Moody's said it also downgraded MFB Hungarian Development Bank's long-term foreign currency debt rating to Aa2 from Aa1; the rating remains on review for possible further downgrade.

Moody's said that these rating actions followed the downgrade to Baa1 from A3 of the Hungarian government's local and foreign currency bond ratings and of the country ceiling for foreign currency deposits. The outlook for these sovereign ratings is negative.

Hungary's country ceiling for foreign currency bonds was downgraded from Aa1 to Aa2 with negative outlook, the agency said.

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