Forint down to 2.5-year low after S&P rating cut

Ratings

The Hungarian forint fell to a two-and-a-half year low of Ft 271.62 against the euro, and 10-year government bonds had their biggest drop since January, after Standard & Poor's lowered the country's credit rating. Hungary's long-term rating was cut one step to BBB+ from A-, the third-lowest investment grade, S&P said in a statement today. The outlook is negative, according to the statement. "Markets were already very nervous given recent emerging market sentiment," said Lars Christensen, an emerging markets strategist at Danske Bank A/S in Copenhagen. "There will be contagion from this to the rest of the region, there is no doubt."  The yield on the benchmark 10-year Hungarian bond rose 14 basis points to 7.21%, the most since Jan. 26. The price, which moves inversely to the yield, fell 0.85, or Ft 85 per 10,000 face amount, to 88.38.  (Bloomberg, Nb 1, NG 1)

 

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

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.