OTP Bank Nyrt. (OTP), Hungary’s largest lender, headed for its biggest weekly slump in five months after Standard & Poor’s revised the outlook on the country’s credit rating to negative from stable.
The shares fell 2.9 percent to 4,400 forint by 11:39 a.m. in Budapest, extending the decline in the past five days to 5.4 percent, the biggest such drop since Oct. 19. The benchmark BUX stock index, in which OTP has the biggest weighting at 33 percent, slid 1.7 percent, down 2.2 percent in the week.
S&P kept Hungary’s rating at BB, two levels below investment grade, according to a statement published after the end of trading yesterday. Banks were among the biggest losers among European stocks today as Cypriot lawmakers begin a debate to unlock bailout funds and prevent a financial collapse.
“The stock market is reacting to the S&P move in an already negative international environment,” Budapest-based analysts at Erste Group Bank AG including Jozsef Miro wrote in a research report.
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