The international rating agency Fitch has affirmed OTP Bank's long-term foreign and local currency issuer default ratings (IDRs) at 'BB +', the agency said in a press release. The outlook on the ratings is negative.
The bank's short-term IDR was affirmed at 'B', Viability Rating – 'bb-', Support Rating – '3'.
“The ratings of OTP Bank take into account the potential support from the parent structure, Hungarian OTP Bank, due to majority ownership (98%), high level of integration, common brand and reputational damage in the event of default of a subsidiary, given the bank's wide international presence”, – Fitch said in a statement.
The “negative” outlook for OTP Bank's ratings reflects negative pressure on OTP Bank's ratings in the context of the coronavirus pandemic and, accordingly, on the Hungarian bank's ability to provide support to its Russian division, the agency's experts say.
According to the results of the second quarter of 2020, OTP Bank took 47th place in terms of assets in the Interfax-100 ranking prepared by Interfax-CEA.