Moody’s leaves Hungary’s debt in ‘junk’ range


Photo by Gil C /

Moody’s Investors Service announced late yesterday that it would not upgrade Hungary’s sovereign debt rating from “junk” to investment grade. The decision was a disappointment but not a complete surprise, especially in the background of the recent Brexit vote, analysts told MTI today.

The Hungarian Ministry of the Economy reportedly said that the uncertainty cast on Hungary and the entire European Union by the June 23 Brexit vote was what caused Moody’s to put off the much anticipated upgrade. Analysts interviewed by Hungarian news agency MTI agreed, and said they had hopes that, if Hungary can maintain a GDP growth level of around 2% this year, Moody’s would probably upgrade Hungary’s debt rating in their next assessment of Hungarian debt, scheduled for November 4. 

Fitch Ratings on May 20 became the first major agency to raise Hungary’s debt rating out of “junk territory” after a series of downgrades that began five years ago. Fitch improved Hungary’s sovereign debt rating to “BBB-” from “BB+”, moving it back to investment grade, and said the outlook for the rating is "stable".

One ratings upgrade is helpful, but the government and analysts have said that two upgrades are needed to really reduce the cost of state borrowing. Analysts said it is expected that Standard and Poor’s will leave Hungary’s rating at “BB+”, just under investment grade, with a “stable” outlook this year.


Gov't Extends Interest Rate Freeze to Student Loans Banking

Gov't Extends Interest Rate Freeze to Student Loans

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

MOL Unable to Deliver New Fuel Orders Until Monday Automotive

MOL Unable to Deliver New Fuel Orders Until Monday

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...


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.