Moody’s leaves Hungary’s rating untouched

Budapest, July 11 (MTI) – Rating agency Moody’s left Hungary’s “Ba1” sovereign long term foreign and domestic issuer rating, one notch under investment grade, with “stable” outlook, untouched in a scheduled review Friday evening.

Most analysts had expected an outlook upgrade to “positive”.

Economy Minister Mihaly Varga said in an interview on Thursday that based on its recent results Hungary “deserves” either a positive outlook or even a upgrade of its rating.

Moody’s downgraded Hungary to “Ba1” from “Baa3” on November 24, 2011.

On May 22, Fitch Ratings affirmed Hungary’s “BB plus” sovereign credit rating, also one notch below investment grade but raised the outlook on the rating to “positive” from “stable”, citing a small but steady decline in government debt, the planned cut in the special bank levy in Hungary next year and the conversion of household forex mortgages to forint debt.

On March 20, Standard & Poor’s Ratings Services raised Hungary’s sovereign credit rating to “BB plus” with “stable” outlook — bringing it in line with Fitch’s and Moody’s rating — citing improving growth prospects and reduced external vulnerability.

Hungary was knocked down from investment grade in 2011 and early 2012 by all three agencies.

According to published schedules, a further review this year is expected from Moody’s on November 6. Standard & Poor’s will review Hungary’s rating again on September 18 while Fitch Ratings is to follow suit on November 20.

Source: http://mtva.hu/hu/hungary-matters