TEXT-Fitch rates Hungarian Export Import Bank notes 'BB+'
Dec 10 - Fitch Ratings has assigned Hungarian Export Import Bank's (Hexim; 'BB+'/Negative) EUR2bn global medium-term note (MTN) programme final senior foreign currency unsecured debt Long- and Short-term ratings of 'BB+' and 'B' respectively. At the same time Fitch has assigned Hexim's USD500m senior unsecured bonds a Long-term foreign currency rating of 'BB+'. RATING ACTION RATIONALE The ratings of Hexim's MTN programme and senior unsecured bond are in line with the bank's Long-term foreign currency Issuer Default Rating and are based on potential support from the Republic of Hungary in light of the bank's policy role and its close integration with the sovereign. The assignment of the final ratings to the MTN programme follows the receipt of documents conforming to the information previously received. The final ratings are the same as the expected rating assigned on 30 November 2012. The five-year senior USD bonds were issued under the EUR2.0bn MTN programme. The bonds carry a fixed 5.5% semi-annual coupon and mature on 12 February 2018. RATING DRIVERS AND SENSITIVITIES The issue and the programme's ratings would be downgraded if the sovereign's credit profile, and hence its ability to provide support is weakened. Fitch is of the opinion that the state's strong propensity to support Hexim is unlikely to be revised in the foreseeable future. Additional information is available on www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 15 August 2012, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria