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Risky companies to rise above 50% next year

Coface Hungary, the Hungarian unit of French credit insurance company Coface, forecasts that as a result of poor 2009 corporate financial results, the percentage of companies operating in the central and eastern European region classified in the risky or moderately risky category will rise to above 50% in 2010 from an average of 45% between 2007 and 2009, Coface informed MTI on Tuesday.

Coface Hungary CEO Zoltán Dercze remarked that Hungary was the only central and eastern European country in which over 50% of companies were persistently classified in the risky category, noting, however, that Hungary was also the only regional country in which the percentage of such companies declined from 2007 to 2009, decreasing from 54.46% in the former year to 51.86% in the latter.

Coface said that the proportion of risky companies has been rising in western Europe too but was still 10% to 15% points lower than those operating in central and eastern Europe in terms of their risk-category rating. (MTI-ECONEWS)