Hungary’s investment outlook downgraded!
S&P Global Ratings affirmed Hungary’s investment grade ‘BBB’ sovereign rating but revised the outlook to negative from stable at a scheduled review on Friday.
S&P rationalised the revision citing external risks – including potential cuts to European Union funds and reduced gas flows – that could weigh on Hungary’s growth prospects and endanger post-pandemic fiscal consolidation.
Rising wage and price inflation, a volatile exchange rate, and upward pressure on borrowing costs could also narrow the government’s policy flexibility, S&P said.
Source: MTI
You should mention that BBB negative is the worst rating possible (there is no C). This means that the interest rate on Bonds issued by the government will be very high.
Another achievement of the Dictator.