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Budapest's credit rating put on review for downgrade by Moody's

The company began a similar review of Hungary's sovereign ratings last month. Moody's Investors Service rates the Hungarian capital's foreign and local currency debt A1, the same as the country. The ratings are linked because of a high proportion of state guarantees in the city's debt and cross default clauses, Moody's said in a statement yesterday. The company placed Hungarian sovereign ratings on a similar review September 22, which will focus on assessing the government's willingness and ability to cut spending. Moody's rates the country's long-term foreign and local currency debt at A1, four steps from the top. (Bloomberg)