Moody's upgrades MKB Bank

Moody's Investors Service said it upgraded the long-term local and foreign-currency deposit ratings of MKB Bank Zrt to B1 from B2.

The bank's baseline credit assessment and its adjusted baseline credit assessment were upgraded to B3 from Caa1 and long-term counterparty risk ratings to Ba3 from B1.

The bank's long-term counterparty risk assessment also was upgraded to Ba3(cr) from B1(cr).

The outlook on the bank's long-term deposit ratings also was changed to positive from stable.

The upgrades reflect the continued restructuring of the bank in preparation for its intended initial public offering toward year-end 2019, evidenced primarily by strengthening of its solvency through ongoing reduction in problem loans and rising capital buffers, Moody's said.

The upgrades were driven by the upgrade of the bank's baseline rating, the agency said.

The upgrades also reflect the reduced risks to the bank's solvency, owing to improvements in asset quality and profitability, which in turn led to stronger capital buffers, Moody's said.

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