Gov't likely to stay, S&P says
Ratings agency Standard and Poor's does not expect violent protests to continue in Budapest and indicated at a conference on Thursday that the Hungarian government was not likely to quit.
CEO Moritz Kraemer said Hungary's BBB+ credit rating did not need to be changed in view of the unrest during the past three days. The vast majority of the population will not support violence, he argued.
Prime Minister Ferenc Gyurcsány’s continuing in his position is crucial for Hungary's reform process as "there is no alternative" within his Socialist Party, Kraemer said. He suggested, at the same time, that the country's rating was connected to the prime minister and said that if Gyurcsány should quit it would create a "completely different situation." The current period is critical for Hungary and it must not afford "the luxury of disappointing the markets once again," Kraemer said.
S&P downgraded Hungary to BBB+ with a negative outlook in June, a few days after the government announced an austerity plan designed to restore financial balance.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.