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Moodyʼs affirms Baa3 issuer ratings of Budapest, changes outlook to positive

Moodyʼs Investors Service, has affirmed the Baa3 local and foreign currency issuer ratings of Budapest and changed the outlook to positive from stable, according to a press release sent to the Budapest Business Journal.

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The affirmation of the ratings and the outlook change to positive reflect the improving systemic risk as captured by Moodyʼs changing the Hungarian governmentʼs (Baa3 positive) ratings outlook to positive from stable, as well as the expectation of continued strong intrinsic strengths of Budapest, the press release notes.

Given the important fiscal and macroeconomic linkages between the city and Hungary, improvements in the credit quality of the sovereign will translate into positive impacts on the credit quality of the city, Moodyʼs notes.