S&P lowers OTP Bank

Standard & Poor's said it lowered its long- and short-term counterparty credit ratings on OTP Bank Rt. and OTP Mortgage Bank to BBB/A-3 from BBB+/A-2 and removed them from Creditwatch, where they were placed with negative implications on Oct. 16.

The outlook on both banks is negative.

This rating action follows the lowering of the sovereign credit ratings on the Republic of Hungary to BBB/A-3 from BBB+/A-2, the agency said.

S&P added that its rating action also takes into account the increasing economic risks prevalent in Hungary and their effect on OTP and OTP Mortgage Bank's creditworthiness, particularly asset quality.

The agency said that the downgrade of the sovereign ratings reflects the adverse impact of a deteriorating international financial and economic environment and increased risk aversion on the Hungarian economy.

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