Fitch acts on Hungarian banks

Fitch Ratings said it affirmed the long-term issuer default ratings of Erste Bank Hungary and Kereskedelmi es Hitelbank at BBB with a positive outlook and CIB Bank Zrt at BBB- with a stable outlook.

The agency also upgraded the viability ratings of Erste Bank to bb+ from bb- and of CIB to bb- from b+.

The viability rating of Kereskedelmi es Hitelbank was affirmed at bb+.

Fitch said the three banks' long- and short-term issuer default ratings and support ratings are based on potential support available from the banks' respective parents, Erste Group Bank AG (A-/stable/a-) for Erste Bank Hungary, KBC Bank (A/positive/a) for Kereskedelmi es Hitelbank and Intesa Sanpaolo SpA (BBB/stable/bbb) for CIB.

The agency said that in its view, the parent entities will continue to have a high propensity to support their Hungarian subsidiaries because the central and eastern European region remains strategically important for each of them.

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