Moody's upgrades Hungarian Forint covered bonds of OTP Mortgage Bank

LONDON (AFX) - Moody's has upgraded Hungarian Forint denominated covered bonds issued by OTP Mortgage Bank to 'Aaa' from 'Aa2', after the recent upgrade of the local currency deposit ratings of OTP MB to 'Aa1/P-1'.

The ratings of the foreign currency denominated covered bonds have also been upgraded to 'Aa1' from 'Aa2'. These ratings are constrained by the foreign currency bond ceiling, Moody's statement said.

The ratings address the expected loss posed to investors by the legal final maturity. The ratings address only the credit risks associated with the programme. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors, Moodys said.

The Hungarian covered bonds are bonds issued directly by OTP MB and benefit from the security provided by a pool of Hungarian residential housing loans. [e-mail] pcm/aku COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited