Hungary 'BB+/B' Ratings Affirmed On Strong Economic Growth; Outlook Stable

OVERVIEW Hungary's economy is benefiting from a cyclical recovery, enabling estimated real GDP growth of 2.4% on average between 2015 and 2018, which should facilitate a gradual decline in its still-high public debt. We continue to regard Hungary's potential growth as weaker than peers, however. We are therefore affirming our 'BB+/B' ratings on Hungary. The stable outlook balances our assessment of the benefits to Hungary's balance sheet from an external surplus, amid a cyclical recovery, against generally less-predictable policymaking. RATING ACTION On Sept. 18, 2015, Standard&Poor's Ratings Services affirmed its 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings on Hungary. We also affirmed our 'BB+' long-term issuer credit rating on the National Bank of Hungary

...Overview Hungary's economy is benefiting from a cyclical recovery, enabling estimated real + GDP growth of 2.4% on average between 2015 and 2018, which should facilitate a gradual decline in its still-high public debt. we continue to regard Hungary's potential growth as weaker than peers, however. + we are therefore affirming our '##+/B' ratings on Hungary. + The stable outlook balances our assessment of the benefits to Hungary's balance + sheet from an external surplus, amid a cyclical recovery, against generally less- predictable policymaking. raTinG acTiOn On Sept. 18, 2015, Standard & Poor's ratings Services affirmed its '##+/B' long- and short-term foreign and local currency sovereign credit ratings on Hungary. we also affirmed our '##+' long-term issuer credit rating on the national Bank of Hungary (Magyar nemzeti Bank; MnB). The outlooks on Hungary and MnB are stable. raTiOnale The ratings on Hungary reflect our assessment of its comparatively advanced economy, skilled labor force,...

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