Moody’s ups FHB deposits to B2

Moody's Investors Service said it upgraded FHB Mortgage Bank Co. plc’s long-term local and foreign-currency deposit ratings to B2 from B3.

Concurrently, the bank's baseline credit assessment (BCA) was upgraded to caa1 from caa2, its adjusted BCA to b3 from caa1 and its long-term counterparty risk assessment to Ba3(cr) from B1(cr).

The bank's long-term ratings and rating inputs were placed on review for further upgrade. The short-term Not Prime deposit ratings and Not Prime(cr) counterparty risk assessment are unaffected.

Moody's said the upgrade primarily reflects the closer integration of FHB into Hungary's savings cooperatives sector, which has reduced previous corporate governance risks under its former ownership and also led the agency to increase its assumptions for sector support to high from moderate previously.

The review for upgrade is driven by the expectation for further gradual improvements in FHB's standalone financial metrics, which together with affiliate support from the sector will likely result in a further upgrade.

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