Moody’s Investors Service agency has downgraded the financial strength rating (FRS) of Bank OTP to C+ from B-. The agency stated that the review did not affect the A1 local currency bank deposit rating and foreign currency subordinated debt rating of OTP Bank, which is affirmed with stable outlook, or its A1 foreign currency bank deposit rating, which is also affirmed and remains on review for possible downgrade in line with the review for possible downgrade on the sovereign ratings.
Our view: We do not expect the news to have a significant negative impact on the stock price today, as it should be expected by the market, following recent OTP's acquisitions.