S&P Global Ratings on July 21 took ratings actions onthree Hungarian banks, following a review of the economic and industry risksfor the country's lenders.
As part of the review, S&P moved Hungary into group 7from group 8 under its banking industry country risk assessment methodology,which uses a 1 (lowest risk) to 10 (highest risk) scale. The economic riskassessment for the country was also revised to 7 from 8.
As a result, S&P upgraded the long-term foreign- andlocal-currency counterparty credit ratings of and unit to BB+from BB, with stable outlooks. The rating agency affirmed the banks' Bshort-term foreign- and local-currency counterparty credit ratings.
S&P also affirmed Magyar Takarékszövetkezeti Bank Zrt.'s BB/B long- andshort-term foreign- and local-currency counterparty credit ratings. The outlookon the long-term rating is stable.
The rating agency said economic and industry risks inHungary are decreasing after the completed conversion of foreign-currencyhousing and consumer loans to Hungarian forints, as well as the establishmentof the Magyar NemzetiBank's MARK Hungarian Restructuring and Asset Management Co. topurchase distressedcommercial real estate assets from banks.
S&P Global Ratings and S&P Global MarketIntelligence are owned by S&P Global Inc.