CIB Bank’s Ratings Lowered

Ref: HU00220 CRA00-01 24 September 2021

CIB Bank’s Ratings Lowered

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has downgraded the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of CIB Bank (CIB) to ‘BB+’ and ‘B’ , from ‘BBB-’ and ‘A3’, respectively. At the same time, CI Ratings has downgraded both the Bank’s Bank Standalone Rating ( BSR ) and Core Financial Strength ( CFS ) rating to ‘bb’ from ‘bb+’. The Outlook on the LT FCR and BSR has been revised to Stable from Negative.

The rat ing action reflects the deteriorating operating environment in Hungary due to Covid-19 and its adverse impact on the economy. This will most likely result in further NPL growth – especially after the Hungarian Government ’s forbearance measures expire at the end of this month – putting pressure on CIB’s modest profitability and…