Reuters – Fitch does not expect change to Hungary rating in short term

Budapest (MTI) – Fitch Ratings does not expect a change to Hungary’s sovereign rating in the short term, the ratings agency said in an emailed response to Reuters before a review scheduled for May 22.

Fitch rates Hungary BB+, one notch below investment grade, with a stable outlook.

“The external front is where we are seeing the main improvement. Thanks to private sector’s external debt de-leveraging and high current account surpluses since 2010, net external debt is rapidly falling. This is a clear positive trend for the rating,” Fitch told Reuters

“The recent agreement with the EBRD to bring the banking sector regulation in line with international best practice is a good signal. But we would like to see more tangible evidence of improved/more stable business environment in practice,” Fitch said.

“We believe Hungary will be able to maintain deficit below 3 percent of GDP in the medium term. However, this might not be enough to ensure a sustained fall in the level of government debt as a percentage of GDP,” Fitch told Reuters.

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