The Hungary’s government expects upgrades by at least two of the three big ratings agencies this year. Standard and Poor’s kept Hungary’s debt in the “junk” category on Friday, citing less predictable policy-making and “increasing opaqueness” around important institutions like the central bank.
Our sovereign ratings on Hungary remain constrained by what we consider to be a less predictable policymaking environment, Hungary’s low potential growth, and high general government indebtedness,” it said.
The agency said substantial net emigration of skilled workers would weigh on Hungary’s underlying growth. “The increasing opaqueness around key institutions, such as the central bank, reduces our visibility of future risks both in and outside the financial sector,” the analysts said.
The ministry said S&P’s affirmation of the rating was expected. The National Economy Ministry stressed in the statement that the ratings agency had acknowledged Hungary’s good economic performance, reduced external vulnerability and improved fiscal balance, MTI reported.
