Standard & Poor’s has confirmed its BB/B rating for long and short-term foreign and local sovereign credit ratings and says the country’s outlook remains stable. This comes on the heels of the central bank’s decision to end its rate cutting policy that had been going on for two years. However, S&P is still cautious about the country’s medium-term prognosis.
“The main reason why S&P may not upgrade Hungary (although at the other rating agencies Hungary has one notch better grade) is the almost stagnating public debt and the FX-denominated loans,” writes KBC in its recent report on the country. It adds that the next important event for Hungarian markets will be the central bank’s rate meeting scheduled for tomorrow.
