Fitch: Hungary Among Most Likely Sovereigns For Investment Grade Upgrade
- 4 Nov 2015 8:00 AM
Hungary’s “BB+” sovereign credit rating is a single notch below investment grade and its outlook is positive and it is likely to be upgraded to investment category, Fitch Ratings said. Ever since Hungary was downgraded to speculative grade in January 2012, its credit profile has improved considerably, consistent with the current positive outlook, Fitch said.
General government balances are forecast to be in line with “BBB” medians for 2015, but debt levels are much higher.
Against the high level of public indebtedness, however, are strong current account positions -- albeit with higher net external debt burdens – and high governance scores, the agency said.
Hungary has been on positive outlook since May 2015 with Fitch, the only major ratings agency to have assigned a positive outlook on Hungary’s sovereign rating.
Moody’s and Standard & Poor’s maintain Hungary’s ratings with stable outlook. Moody’s is scheduled to review Hungary on Friday, followed by Fitch on November 20.
Standard & Poor’s has now concluded the scheduled reviews of Hungary’s ratings for this year.
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