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Rating of Hungary after elections

Moody's Investor Service will wait until after Hungary's October municipal elections to publish a review on the country's efforts to cut the budget deficit, Reuters reported late last night, citing an analyst at the agency. Moody's ruled out immediate action against Hungary and will wait for the implementation of austerity measures, mostly at the local government level, the newswire cited Moody's analyst Jonathan Schiffer as saying. As Hungary raises taxes to curb the shortfall, “the government risks jeopardizing the economy if it keeps burdening the country's private sector,” Reuters reported, citing Schiffer. Moody's rates Hungary's long-term foreign and local-currency debt at A1, four levels below the top investment grade. It cut the outlook to negative from stable on Feb. 22, indicating it is more likely to reduce the grade than leave it unchanged or raise it. (Bloomberg)