Reuters: Fitch does not expect change to Hungaryʼs rating
International agency Fitch Ratings does not expect a change in Hungaryʼs sovereign rating in the short term, Fitch told international news agency Reuters in an email prior to a review scheduled for May 22. Reuters said that Fitch has rated Hungary BB+, one notch below investment grade, with a stable outlook.
"The external front is where we are seeing the main improvements. Thanks to private sectorʼs external debt de-leveraging and high current account surpluses since 2010, net external debt is rapidly falling. This is a clear positive trend for the rating," Fitch told Reuters.
"The recent agreement with the EBRD to bring the banking sector regulation in line with international best practice is a good signal. But we would like to see more tangible evidence of improved/more stable business environment in practice," Fitch said.
"We believe Hungary will be able to maintain a deficit below 3% of GDP in the medium term. However, this might not be enough to ensure a sustained fall in the level of government debt as a percentage of GDP," Fitch told Reuters.
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