Ownership support. Market position in domestic corporate banking. High systemic importance in Hungary. Deteriorating asset quality and earnings. Heightened credit risks from a rapid rise in unseasoned lending, loan concentrations, and a high proportion of foreign currency lending. Weak capitalization relative to its stand-alone risk profile in difficult markets. The unsolicited public-information ('pi') rating on Hungarian bank MKB Bank ZRT is based on the support expected from MKB's majority shareholder, Germany-based Bayerische Landesbank (BayernLB; BBB+/Negative/A-2). The rating is constrained by economic and industry risks in the Republic of Hungary, which increase the likelihood of severe repercussions on MKB's financial profile (for more details on country risks see "Banking Industry Country Risk Assessment: Hungary (Republic of)," published on Aug. 27, 2009,...
Companies mentioned in this report are:
- MKB Bank ZRT (Unsolicited Ratings)
- Bayerische Landesbank
- Bavaria (State of)
- Bayerische Landesbank Girozentrale (NY Branch)
- MKB Romexterra Bank S.A.
- Bayerische Landesbodenkreditanstalt
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