Moody’s Investors Service has placed the long- and short-term local currency deposit ratings of OTP Bank and OTP Mortgage Bank under review for upgrade because of methodological changes, OTP Bank said, citing a release from the ratings agency on Tuesday. At the same time, Moody’s withdrew the Bank Financial Strength Ratings, OTP said. Moody’s said that the rating actions related to its new bank rating methodology affected 1,021 out of 1,934 rated banking entities.
Economic news portal portfolio.hu reported that Moody’s Investors Service announced multiple rating actions following the publication of its new bank rating methodology, which now is the primary methodology for Moody’s bank ratings globally. “The rating actions affect 1,021 out of 1,934 rated banking entities, which include operating banks, holding companies, subsidiaries, special purpose issuance conduits, branches and other entities for which Moody’s has assigned ratings to at least one debt class. Within this total group of entities, 856 are assigned baseline credit assessments (BCAs), of which 147 are affected,” Moody’s said.
Hungary’s OTP said earlier this month that it would pay a 146 forint-per-share dividend on 2014 earnings, despite the lender reported a consolidated after-tax loss of 102.3 billion forints for the full year. Chairman-CEO Sándor Csányi said after the lender published its Q4 report that OTP was keeping its promise to pay a dividend. Last year, the bank paid a 145 forint-per-share dividend on 2013 earnings.
OTP Bank Group is one of the largest independent financial services providers in Central and Eastern Europe with full range of banking services for private individuals and corporate clients. OTP Group comprise large subsidiaries, granting services in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. The bank is serving clients in 9 countries, namely Hungary, Slovakia, Bulgaria, Serbia, Romania, Croatia, Ukraine, Montenegro and Russia.
via hungarymatters.hu, portfolio.hu and moodys.com photo: Imre Faludi – MTI