Standard & Poor has upgraded OTP Bank and OTP Mortgage Bank from its previous negative rating to “stable”. It gave both banks a “BB/B” rating, according to the Budapest Business Journal. BBJ reported that the rating agency cited the country’s stabilizing economy and to improved GTP expectations for 2014. But it warned that ongoing discussions over mortgage regulations along with difficult relations with Ukraine and Russia could have an impact on the company’s profitability and position. The rating agency Moody’s warned that a compensation deal being sought by the Hungarian government could end up costing the banking sector 11 percent of its entire capital.
