Hungary 'BB+/B' Ratings Affirmed; Outlook Stable

OVERVIEW Hungary's external vulnerabilities have diminished. Policy uncertainties persist nevertheless and could represent fiscal risks to Hungary's public sector, which remains more indebted than those of regional peers. We are therefore affirming our 'BB+/B' ratings on Hungary. The stable outlook balances our assessment of Hungary's declining external vulnerabilities and steady headline fiscal performance against its still-high general government indebtedness, less-predictable policymaking, and weak underlying growth potential. RATING ACTION On March 18, 2016, 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 (Magyar Nemzeti Bank; MNB or central bank). The outlooks on Hungary and MNB

... diminished. + Policy uncertainties persist nevertheless and could represent fiscal risks to + Hungary's public sector, which remains more indebted than those of regional peers. we are therefore affirming our '##+/B' ratings on Hungary. + The stable outlook balances our assessment of Hungary's declining external + vulnerabilities and steady headline fiscal performance against its still-high general government indebtedness, less-predictable policymaking, and weak underlying growth potential. raTing acTiOn On March 18, 2016, 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 or central bank). The outlooks on Hungary and MnB are stable. raTiOnale...

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