Standard & Poorʼs ratings agency is likely to leave Hungaryʼs debt in “junk” territory, due to unpredictable economy policies and heavy dependence on EU funding, Reuters reported.
The key factor holding back the rating now is the difficult predictability of policymaking, weakened institutional framework and maybe also the dependence on the transfers from the EU budget, which is very large, said S&P's EMEA sovereign chief Moritz Kraemer.
S&P has kept Hungary one notch below that grade at BB+, however, but with a stable outlook and questions over politics there too, Kraemer suggested it was unlikely to be following Fitch soon. A month ago Fitch elevated Hungary's debt rating from junk to investment grade, becoming the first agency to improve Hungary’s sovereign debt rating.
