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Fitch revises Hungary’s outlook to negative

  The international credit-rating agency Fitch Ratings said Monday it affirmed Hungary’s Long-term foreign currency issuer-default rating (IDR) at ‘BBB’ and Long-term local currency IDR at ‘BBB+’, while revising the outlooks on both Long-term IDRs to Negative from Stable.

The agency has simultaneously affirmed Hungary’s Short-term Foreign Currency IDR at ‘F3’, and Country Ceiling at ‘A’, it said.

David Heslam, director of Fitch’s sovereign team, published the following statement along with the revision of Hungary’s outlook: “The Negative Outlook reflects the continued deterioration in Hungarian and European economic prospects, which combined with on-going pressure on Hungary’s balance of payments and currency, increase the risk that Hungary’s external and public debt profile will worsen by more than anticipated when its sovereign ratings were downgraded last November.”

“Contrary to our expectations at the time, the IMF-led support package has not yet cemented macroeconomic and financial stability,” Heslam added. (MTI-Econews)