Fitch cuts view to negative for two Hungarian banks

Fitch Ratings said it changed the outlooks for Hungary's Kereskedelmi es Hitelbank Rt. and Central European International Bank to negative from stable.

Their issuer default ratings are affirmed at A+, short-term ratings at F1 and support ratings at 1. The individual ratings are affirmed at C for Central European International Bank and D for Kereskedelmi.

The change in outlook follows the change in the outlook for Hungary's BBB+ issuer default to negative, the agency said. A downgrade in Hungary's sovereign rating could result in a change in the country ceiling, which is currently at A+.

Fitch said the issuer default ratings, short-term and support ratings are based on the extremely high potential support from the banks' majority shareholders in case of need: KBC Bank for Kereskedelmi and Banca Intesa for Central European International Bank. Both parent banks have AA- issuer default ratings.

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