S+P affirms Hungary rating; outlook still stable
Budapest, March 18 (MTI) – Standard and Poor’s Ratings Services on Friday affirmed its ‘BB+/B’ long- and short-term foreign and local currency sovereign credit ratings on Hungary.
The outlook for Hungary remains stable, S+P said.
Hungary’s government reiterated that it expects upgrades by at least two of the three big ratings agencies this year.
“The government expects at least two of the big three ratings agencies could put Hungary into the investment-grade category in 2016,” the economy ministry said.
It said the affirmation of the rating was “in line with expectations” and noted that the agency had acknowledged Hungary’s good economic performance, its reduced external vulnerability and improved fiscal balance. S+P also pointed out increased domestic ownership of state debt and a lower level of FX state debt, as well as positively assessing the country’s well-trained workforce and balanced export structure.
The ministry said earlier in March — after Moody’s did not update Hungary’s sovereign rating, though a review had been scheduled — that the government expects at least two upgrades this year.
S+P, Moody’s and Fitch all rate Hungary one notch under investment grade, but the outlooks of Moody’s and Fitch are both “positive”.