S&P lifts two Hungary banks

S&P said it raised the long-term foreign- and local-currency counterparty credit ratings on OTP Bank plc and its core subsidiary OTP Mortgage Bank to BB+ from BB.

The agency also said it affirmed the B short-term foreign- and local-currency counterparty credit ratings on both banks.

The outlooks on both banks are stable.

The actions follow the review of economic and industry risks for Hungarian banks, S&P said.

There have been several positive developments since the last review of the banking industry in Hungary, the agency said.

Those developments include regulatory changes, including the completed conversion of households' housing- and consumer-loans in foreign-currency to Hungarian forint, S&P explained.

The changes also included the establishment of a new asset-management company to deal with problem commercial real estate loans, the agency said.

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