Fitch upgrades four Hungary banks

Fitch Ratings said it upgraded the long-term issuer default ratings of Kereskedelmi es Hitelbank Zrt. (K&H) and Erste Bank Hungary Zrt. (EBH) to BBB+ from BBB.

The agency also said it upgraded MFB Hungarian Development Bank Private Ltd. Co.'s (MFB) and Hungarian Export Import Bank Private Ltd. Co.'s (Hexim) long-term issuer default recovery to BBB from BBB-.

The outlook is stable.

The upgrades follow the upgrade of Hungary's ratings, Fitch said.

K&H's and EBH's viability ratings are unaffected by these actions, the agency said. The ratings also reflect an opinion of a high propensity that these banks would be supported, if required, by their respective parents, KBC Bank and Erste Group Bank AG, Fitch said.

This is based on the strategic importance of the central and eastern European region for each of the parent banks, the agency said.

K&H's and EBH's long-term issuer default ratings remain capped at one notch higher than the Hungarian sovereign to reflect the country risks they face, Fitch said.

Hexim's and MFB's issuer default ratings and senior unsecured debt ratings are equalized with those of the Hungarian sovereign, the agency added.

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