Moodyʼs announced the action late Friday, local time, citing the governmentʼs strong commitment to a low budget deficit and the declining share of FX liabilities in state debt as well as the improving economic outlook as reason for the upgrade.
“Ratings agencies are starting to acknowledge Hungaryʼs economic results, after they were acknowledged by international financial institutions and investors,” the ministry said.
“Expanding employment, the balanced budget, the years-long decline in state debt, the extraordinarily favorable trade surplus all show that the Hungarian reforms are working,” it added.
“Hungaryʼs international assessment has really improved, according to the market, which the ratings agencies should not disregard, not only in their outlooks, but in their ratings,” the ministry said.
All three key credit ratings agencies put Hungary below “investment grade”, but the outlooks on the ratings by Moodyʼs and Fitch are “positive”.
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