Hungary Downgraded By Moody’s
- 8 Dec 2010 2:00 AM
Hungary’s sovereign credit rating on Monday was reduced to Baa3 from Baa1 by Moody’s Investors Service, according to Bloomberg. Baa3 is the lowest investment grade, and one step away from speculative, or “junk” category. The Hungarian Forint weakened after the announcement.
“Today’s downgrade is primarily driven by the Hungarian government’s gradual but significant loss of financial strength, as the government’s strategy largely relies on temporary measures rather than sustainable fiscal consolidation policies,” Moody’s said, according to Bloomberg.
The rationale resonates with Standard & Poor’s November verdict, which called the Hungarian Government’s measures ad-hoc and lacking structural reforms.
By Andras M. Badics, published on XpatLoop.com with the permission of BudapestReport.com
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