MBH Bank Recommended Investment Rating Confirmed

With a stable outlook, Moody's Investors Service has confirmed MBH Bank's recommended investment ratings: among other things, its long- and short-term bank deposit ratings, as well as its senior unsecured MTN program and senior unsecured debt ratings.

Based on the analysis of the international rating agency, it was highlighted that the confirmation of the debtor quality assessment shows that the bank's financial profile and financial stability are constantly improving. Furthermore, they emphasized the increasing profitability potential of the credit institution, which resulted from the purchase of the majority ownership of Fundamenta and the appropriate use of the resulting synergy effects and cross-selling opportunities.

In addition, the credit rating agency pointed out the continuous improvement of MBH Bank's asset quality, as well as the fact that the bank's significant loan loss reserves provide reliable protection against the interest rate caps lifted by the government, they added.

According to the announcement, Moody's took into account the impact of the acquisitions on capital and MBH Bank's strong growth ambitions when confirming its debt quality assessment. The credit rating agency also indicated that the bank's largely deposit-based financing profile and strong deposit portfolio, as well as significant liquidity reserves, support its stable debt quality assessment.

According to the announcement, Péter Krizsanovich, MBH Bank's deputy general manager responsible for strategy and finance, emphasized that the result of the credit rating confirms the success of their strategy, as well as MBH Bank's outstanding financial performance, reflects their stability and lays the foundation for their further growth plans.

In addition to confirming the ratings, Moody's also found that the stable outlook for MBH Bank's long-term deposit and senior unsecured debt ratings reflects that the bank's credit profile and funding structure will remain roughly unchanged in the next 12-18 months, read MBH's statement.

MBH Bank has the largest number of bank branches in Hungary, serving almost two and a half million retail and corporate customers, and its total balance sheet total is close to HUF 11,785 billion. The bank's deposits amount to more than HUF 7,588 billion, while the gross loan portfolio exceeds HUF 5,643 billion.

The bank's market position is decisive, including in the corporate segment, including in micro, small and medium-sized enterprise lending, in the leasing market, in the agricultural and food industry business, and also carries out a wide range of money and capital market and investment service activities. MBH Bank's strategic goal is to become one of the most decisive banks in Hungary and to appear on international markets, including the countries of the Central and Eastern European region.