S&P lowers OTP Bank view to negative

Standard & Poor's said it revised to negative from stable the outlook on OTP Bank plc and its core subsidiary, OTP Mortgage Bank.

The agency also said it affirmed the BB/B long- and short-term counterparty credit ratings on the banks.

The outlook revision considers a recent similar action on the Republic of Hungary, the agency said.

The outlook revision on the sovereign reflects an opinion that the predictability and credibility of Hungary's policy framework continues to weaken, S&P said.

This is partly due to policy decisions that raise questions about the independence of oversight institutions and their credibility, the agency said.

These measures could erode Hungary's medium-term growth potential by reducing the banks' willingness to lend and companies' propensity to invest, S&P said.

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