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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.