Moody's affirms Budapest Baa3 rating, revises outlook to stable
Photo by Alexey Oblov / Shutterstock.com.
Moody's Investors Service on Tuesday affirmed the Baa3 local and foreign currency long-term issuer ratings of the city of Budapest and changed the outlook to stable from positive, according to a report by state news wire MTI.
"The affirmation of the ratings and the outlook change to stable reflect Moody's expectation that the City of Budapest will effectively implement significant budgetary measures in the coming years despite current difficult budgetary challenges prompted by effects of the pandemic, which Moody's considers a social risk," Moody's said.
"The city will also benefit from an improving systemic risk as captured by Moody's upgrade of the Government of Hungary's rating to Baa2 from Baa3 with stable outlook," it added.
Moody's upgraded Hungary's sovereign rating to Baa2 - level with the ratings assigned to the country by the other two big credit rating agencies - on Friday.
Moody's said an upgrade of Budapest's ratings would require "a significant improvement" in its operating performance and strengthening of the liquidity position associated with contained debt. The city's rating could also be helped by an upgrade of Hungary's sovereign rating, it added.
"Additional increase in structural budgetary pressures stemming from the funding of public transportation, leading to a persistent deterioration in the city's operating performance, or an abrupt increase in debt level, would also put negative pressure on the ratings," Moody's said.
French Chamber's Garden Party "La Vie en Rose" Lanterns & Ch...
Attack on Slovak PM 'Shocking' - Szijjártó
Waberer's Books Record Revenue in Q1
7th Edition of BSC Charity Beach Volleyball Tournaments Comi...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
