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Summary

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 or the Bank) 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 and is aligned with CI’s internal assessment of sovereign credit risk for Hungary.

The Bank’s BSR is derived from a CFS rating of ‘bbb-’ and an Operating Environment Risk Anchor (OPERA) of ‘bbb-’ (indicating modest risk). The Bank’s CFS rating is supported by strong capitalisation, a solid funding profile, good liquidity, and improved profitability metrics. Capital is of high quality, composed largely of CET1, and supported by adequate internal…