FRANKFURT (Standard&Poor's) April 26, 2010--Standard&Poor's Ratings Services said today the outcome of general elections in Hungary has no immediate impact on the ratings on the Republic of Hungary (BBB-/Stable/A-3). The two-thirds majority of parliamentary seats gained by center-right opposition party Fidesz should enable the new government to implement far-reaching administrative and fiscal reforms that require a constitutional change. Should the government choose to implement such potentially unpopular reforms, such as reforming the municipality system and reducing the overprovisioning of public services, we believe this would eventually contribute to strengthening Hungary's public finances, and could support rating improvements over the medium term. Ultimately, however, we believe improvements in Hungary's creditworthiness will depend on the government's overall policy
