Moody's upgrades OTP Bank

Moody's Investors Service said it upgraded to A1/B- OTP Bank and OTP Mortgage Bank's deposit and financial strength ratings from A2/C+.

The outlook is stable.

The agency said the upgrade reflects the group's excellent profitability and its achievement in transforming the retail domestic bank into a regional group present in most financial segments while maintaining a moderate risk profile.

However, the rating also encompassed the fact that further internal reorganization will be needed at the group level and the challenges it will face to integrate and develop its newly acquired subsidiaries abroad, the agency added.

Moody's said the company's risk profile remains moderate due to the predominance of retail activities, but improvements are needed in terms of internal reorganization and the streamlining of its IT systems.

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