BUDAPEST: Moodyʼs Investors Service yesterday assigned a provisional (P)Ba1 long-term foreign-currency senior unsecured debt rating to Hungarian state-owned MFB’s (Hungarian Development Bank) planned Euro-denominated bond issuance, the ratings agency said in a press release.
The provisional rating assigned to the senior debt obligations of MFB is in line with Hungaryʼs Ba1 government bond rating, Moody’s said, adding that MFB is a bank that is owned and guaranteed by the Hungarian government, and which plays a vital role in the governmentʼs policy to support domestic economic development.
“Moodyʼs assumes a very high probability of support from the Hungarian government for MFB, reflected in the framework of explicit and irrevocable state guarantees for funding and foreign currency risk. In addition, Moodyʼs acknowledges that the Hungarian government has historically provided capital support to MFB,” the statement added.
