Standard & Poor’s places Hungary on negative credit watch
Ratings agency Standard & Poor’s has placed Hungary’s ‘BBB-/A-3’ foreign- and local-currency sovereign credit ratings on CreditWatch with negative implications, Standard & Poor’s announced on Saturday.
The ratings agency said that it had placed Hungary on negative credit watch because it believes the country’s unpredictable policy moves have weighed on its medium-term growth prospects.
"The rating action reflects our view that a more unpredictable policy environment, stemming from a weakening of oversight institutions and some budgetary revenue decisions, will have a negative effect on economic growth and government finances," Standard & Poor’s said in a statement. The agency said downside risks to Hungary’s creditworthiness were increasing as the external financial and economic environment was weakening.
Standard & Poor’s added it was likely to decide on Hungary this month "pending further information from the Hungarian government regarding how it will address the ongoing economic challenges."
On Friday Fitch Ratings said it revised the outlooks on Hungary’s long-term foreign and local currency Issuer Default Ratings (IDR) to Negative from Stable. It affirmed the ratings at ‘BBB-’ and ‘BBB’, respectively.
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.