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Moody’s downgrades Budapest credit ratings with negative outlook
Ratings agency Moody’s on Monday said it downgraded Budapest’s baseline credit assessment (BCA) to ba1 from baa3 and long-term foreign and domestic issuer ratings to Ba1 from Baa3, putting them below investment grade. Mayor Gergely Karácsony blamed ‘usurious’ govt for Moody’s downgrade of Budapest.
Moody’s downgraded Budapest credit ratings
The agency said the action follows the disclosure of Budapest’s liquidity position highlighting concerns about the city’s capacity to repay all of its obligations as required by 31 December 2025, the Hungarian News Agency wrote.
Uncertainty around the timing and receipt of ordinary transfers, together with very weak liquidity to absorb unexpected cashflow gaps, materially increases the city’s near-term credit risk, it added.
Strained intergovernmental relations are evident in ongoing legal disputes over the amount of the solidarity tax to be paid by Budapest to the central government and the absence of the central government’s approval for new long-term borrowing by the city.
Liquidity concerns
Moody’s noted that the ratings have also been placed on review for further downgrade. Previously the outlook was negative.
This decision reflects the increased risk of default and the potential acceleration of repayment of the city’s long-term debt due to liquidity concerns. This includes any outstanding portion of the city’s HUF 40bn overdraft.
Moody’s said the heightened risks stem from the unexpected delay in the disbursement of the transfers by the central government that the city had already budgeted. Although Budapest indicated it will secure additional sources of liquidity to meet its obligations even if the ordinary transfers are not received, details on how these additional sources will be secured were not made available, it added.
Mayor blames ‘usurious’ govt for Moody’s downgrade of Budapest
Ratings agency Moody’s recent downgrading Budapest has been “a consequence of the government’s senseless and petty policy of extortion”, Mayor Gergely Karácsony said on Tuesday, adding that the whole country could see drawbacks of the “anti-Budapest government policies”.
According to the mayor, the downgrade was an “obvious” development after the money markets had expected “a sensible financial deal” between the government and the capital but “despite all signals the government proved incapable of such an agreement: they continued tapping Budapest’s accounts and failed to meet their legal obligations towards the capital.”
“Moody’s decision has been a consequence of that governmental attitude,” Karácsony said. The mayor suggested that the ratings agency saw increased risk in “the government’s delaying payments to the city already included in the metropolitan budget“.
Karácsony slammed the government for the cabinet’s “reluctance to negotiate” over “a twenty fold increase” in recent years in the city’s tax payments to the central budget. He said the city’s solidarity tax had been raised by 31 percent in 2024, to 76 billion forints, while it was expected to reach 89 billion forints in 2025, 21 percent of the total municipal revenues. He noted that the tax the city was obliged to pay would exceed subsidies from the central budget, while “prolonged legal disputes … increase instability of the system, jeopardise the budget and the balance of financial assets.”
Late on Monday, Moody’s said it downgraded Budapest’s baseline credit assessment (BCA) to ba1 from baa3 and long-term foreign and domestic issuer ratings to Ba1 from Baa3, putting them below investment grade.
The agency said the action follows the disclosure of Budapest’s liquidity position highlighting concerns about the city’s capacity to repay all of its obligations as required by 31 December 2025.
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Credit rating institutions are a self-serving cartel. They should be abolished or at least ignored.
However, the globalist-socialist-fascist puppet of a mayor, and his fellow travelers, have indeed done a harakiri on Budapest’s finances. They blame Orban’s federal government–of course they do–because they don’t want to actually practice their “redistribution of wealth” credo. Funny how that works, ain’t it! However, even if they didn’t have the excuse of this “solidarity tax,” they’d have created a black hole in the budget anyway. Their kind always does.
So go on, Greg, blow tax forints on another thousand buses with phone chargers and coffee machines, even though two thirds of Budapest travels on mass transit for “free” and the whole thing is unprofitable. Make commerce even harder by spending hundreds of millions of Fts. building bicycle tracks that stand empty while motorized traffic (including trucks, delivery vans, workers’ cars, and even the airport bus!) is stuck in miles-long tailbacks. Waste money power-washing sidewalks even after an entire night of heavy rains. Enough impressionable students and public sector sinecure holders will still vote for you.
Can’t fix stupid…
Delivered that all in the continuation of the GLOOM of the FUTURE of Hungary, through the name of Victor Mihaly. Orban – the facts and truth that just keep being PRODUCED – the “abyss” of a new dark age that Orban has delivered us into, this article subject matter delivers us again, why come Spring of 2026 the name Fidesz, the name Victor Mihaly. Orban need’s to be Removed – from Political Party leadership of Hungary.
We have been “screwed” and “stuffed” – lied to, betrayed, embarrassed the name of our country Hungary devastated of trust and respect witnessing the “crushing” of relationships with country’s that have stood existed for “longness in time” especially, those of Governance under DEMOCRACY.
Victor Mihaly. Orban – that name alone, the “judas” of Democracy has been the POWER that has SOLD us out as a country, through his personal and his Political Party’s Fidesz – their “creed” of Greed, Selfishness and EXPLOITING – abusing us individually in millions and the name of our country – Hungary.
Nothing, absolutely Nothing, the name Victor Mihaly. Orban & Fidesz – nothing they HAVE to give, to contribute to the FUTURE of Hungary – NOTHING.
THINK, think – think long and hard communicate talking to-gether Hungarians from whatever “station in life” you live your life, in cities, towns and villages, in growing numbers of hamlets spread out and across Hungary, created through and by the name – Victor Mihaly. Orban – reflecting 1.2 million Hungarians – in our decreasing and ageing population – to live in POVERTY, our FUTURE – the gargantuan CHALLENGES presented to us all Hungarians of a future that is “misted” of grave un-certainty.
Hungarians – knowing the DARK hole of the FUTURE the name Victor Mihaly. Orban – commencement June 1989 his “mouth” the mouth of words that he LIED to us, that through to 2025 – has been his personal enactment play out of FRAUD personally – his Fear of Truth – against us individually and as a country, do we wish as a country to be dictated to or haha Governed by a Prime Minister a Government that is just “riddled” infested with a “toxic culture” under Victor Mihaly. Orban ???
Think, make time to THINK – our FUTURE – who gives a FUTURE – who gives HOPE.