In its report published on Tuesday Fitch Ratings reaffirmed Eximbank’s previous long- and short-term credit ratings of ‘BBB/F-2’, which are in line with Hungary’s sovereign rating. The expert analysis this year also highlights the bank’s strategic role in Hungarian export financing and counter-cyclical support for local companies, as announced in a Wednesday statement by EXIM Hungary, the country’s official export credit agency.
Fitch Ratings confirmed Eximbank’s investment-grade rating. The bank’s senior unsecured bonds also received a ‘BBB’ rating. The bank’s international rating matches Hungary’s sovereign rating due to EXIM’s statutory full faith and credit guarantee provided by the Hungarian state, as stated by the agency.
According to the statement, Fitch believes that the amount of state financing available to the financial institution provides sufficient flexibility for the planned growth in loan portfolios. The bank’s access to international capital and money markets, the high liquidity of the Hungarian financial sector, and the bank’s long-term funding profile help mitigate potential refinancing pressures.
The 18.8 per cent capital adequacy ratio continues to offer a substantial buffer above the regulatory minimum requirement.
Eximbank’s financial reports for the past year indicate that, thanks to increased lending, the bank’s total assets rose by more than 74 per cent to 3,642 billion forints in 2023, with its loan portfolio approaching 2,500 billion forints by the end of the year, reflecting a 50 per cent increase. The total value of loans disbursed last year was nearly 1,444 billion forints, more than two and a half times the amount disbursed in 2022, the statement highlighted.
In 2023, international market confidence in Hungary remained unbroken, as evidenced by Eximbank’s two exceptionally successful bond auctions last year. In the spring of 2023, the financial institution successfully issued foreign currency bonds worth $1.25 billion, one of the largest transactions of its kind in the history of Hungarian capital markets, excluding Hungarian state issuances. In the autumn, the bank sold bonds worth 1 billion euros on international capital markets.
EXIM Hungary remains committed to assisting Hungarian companies in realising their business plans, thereby contributing to the long-term growth potential of the Hungarian economy, the export credit agency emphasised. They also noted that in February 2023, the financial institution launched the Baross Gábor Reindustrialisation Programme, the largest domestic preferential loan scheme ever, initially with a budget of HUF 700 billion, which was later increased to HUF 1,000 billion due to high demand. The programme aimed to enhance the competitiveness of domestic companies and stimulate investments. At the beginning of 2024, the loan programme was further expanded by an additional 200 billion forints, making a total of 1,200 billion forints available to Hungarian businesses. They stressed that the Baross Gábor Reindustrialisation Programme is among the most successful loan programmes in the 30-year history of EXIM and Hungary, significantly contributing to the restart of economic growth this year and further enhancing competitiveness, with economic growth expected to rise to 4.1 per cent next year.
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