RPT-Fitch rates MFB Hungarian Development Bank Private Limited Company's upcoming bond issue
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Sept 25 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned MFB Hungarian Development Bank Private Limited Company's upcoming senior unsecured notes an expected Long-term rating of 'BB+(EXP)'.
KEY RATING DRIVERS
The issue's expected Long-term rating is in line with MFB's Long-term foreign currency Issuer Default Rating (IDR) of 'BB+'/Stable. MFB's Long-term foreign currency IDR is at the Support Rating Floor and it reflects what Fitch views as a moderate probability that the Hungarian state would support the bank if required. Fitch believes that the government's propensity to support MFB is likely to be strong. However, its ability to do this, and therefore the bank's Support Rating, is limited by the sovereign ratings.
MFB plans to issue a medium-term senior unsecured bond in the US market. The issue's total amount (planned to be at least USD500m) and final maturity are yet to be determined. Fitch expects that the bank will use the proceeds to refinance its EUR500m bond maturing in October 2013.
MFB's ratings and the bond's expected rating are sensitive to changes in the Hungarian sovereign foreign currency Long-term IDR (BB+/Stable). Fitch believes that the state's strong propensity to support MFB is unlikely to be revised in the foreseeable future.
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