K&H Bank – Ratings Affirmed; Outlook Remains Negative

K&H Bank – Ratings Affirmed; Outlook Remains Negative

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Kereskedelmi es Hitelbank (K&H) at ‘BBB’ and ‘A2’, respectively. At the same time, CI Ratings has affirmed K&H’s Bank Standalone Rating (BSR) of ‘bbb-’, Core Financial Strength (CFS) rating of ‘bbb-’ and Extraordinary Support Level (ESL) of Moderate. The Outlook on the LT FCR and BSR remains Negative.

The Bank’s LT FCR is set one notch above the BSR to reflect the moderate likelihood of extraordinary support in the event of need. We consider K&H to be strategically important for KBC Bank N.V. (KBC). The group has held full ownership of the Bank for many years and provides long-term Tier 2 capital support. Based on the group’s strong presence in Central Europe, KBC continues…