Fitch Ratings downgrades Hungarian Banks
16. January, 2012
Four Hungarian banks have received a downgraded rating from Fitch Agency due to the negative outlook for the banking sector in Hungary. The long-term debt of CIB and K&H banks is lowered to “BBB”. Fitch also downgraded the support of the parent concerning CIB, K&H, Erste and Raiffeisen banks.
The weakened grades are a result of the economic recession and the large losses caused by the special taxes and the foreign-currency mortgage early repayment scheme.
Hungary’s total debt has risen to 82% of its output, while its currency, the forint, has fallen to record lows against the Euro.
