Hungary 'BBB-/A-3' Ratings Affirmed; Outlook Stable

OVERVIEW We expect Hungary's real GDP growth will pick up slightly to about 3.0% in 2017 before moderating to just under 2.5% on average between 2018-2020. Hungary's sizable current and capital account surpluses are supporting the economy's continued deleveraging. We are therefore affirming our 'BBB-/A-3' sovereign credit ratings on Hungary. The stable outlook reflects our assessment of Hungary's strong external profile, and modest fiscal deficits, against its high levels of public debt, and moderate long-term growth prospects. RATING ACTION On Feb. 24, 2017, S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Hungary. We also affirmed our 'BBB-' long-term issuer credit rating on the National Bank of Hungary (Magyar Nemzeti Bank; MNB

...Overview we expect Hungary's real GDP growth will pick up slightly to about 3.0% in 2017 + before moderating to just under 2.5% on average between 2018-2020. Hungary's sizable current and capital account surpluses are supporting the + economy's continued deleveraging. we are therefore affirming our '###-/A-3' sovereign credit ratings on Hungary. + The stable outlook reflects our assessment of Hungary's strong external profile, + and modest fiscal deficits, against its high levels of public debt, and moderate long-term growth prospects. rATinG AcTiOn On Feb. 24, 2017, S&P Global ratings affirmed its '###-/A-3' 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 outlook on both Hungary and MnB is stable. rATiOnAle Hungary's substantial external surpluses and its track record of fiscal restraint support the sovereign ratings....

Ratings Action