Moody's cuts Banka Solvensko to A3

Moody's Investors Service said it downgraded the foreign-currency bank deposit ratings of OTP Banka Slovensko to A3/prime-2 from A2/prime-1. The D- financial strength rating is affirmed.

The action follows the recent rating actions taken on its parent, Hungary's OTP Bank. In December the financial strength rating of OTP Bank was downgraded to C+ from B-. The foreign-currency bank deposit rating of OTP Bank recently was downgraded to A2 from A1, in line with the similar action taken on the ratings of Hungary.

The downgrade of Banka Slovensko reflects the reduction in the level of support that can be provided to the bank by its parent as shown by the downgrade of OTP Bank's bank financial strength rating and the slight increase in transfer risk as reflected in the downgrade of the foreign-currency deposit ceiling of Hungary to A2 from A1, Moody's said.

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