Moody's Downgrades Hungary

Discussion in 'Wall St. News' started by ASusilovic, Dec 6, 2010.

  1. BUDAPEST—Credit rating agency Moody's Investors Service Inc. downgraded Hungary by two notches on Monday citing fiscal-sustainability concerns, holding the country in investment-grade territory but maintaining its negative rating outlook.

    "We expect that the headline budget deficit figures will be met thanks to temporary measures but in a situation like this, we need to look beyond the headline figures," said Dietmar Hornung, vice-president of Moody's Investors Service. "We expect a significant deterioration in the structural deficit."

    Moody's downgraded Hungary's foreign- and local-currency government bond ratings by two notches to Baa3 from Baa1, citing increased concerns about the country's medium- to long-term fiscal sustainability and higher "external vulnerabilities" than most of Hungary's rated peers.