Hungary Long-Term Rating Raised To 'BB+' On Reduced External Vulnerability; Outlook Stable

OVERVIEW Hungary's external imbalances have unwound substantially since the onset of the global financial crisis. The conversion of foreign currency-denominated household mortgage debt into local currency earlier this year, combined with the government's policy of borrowing primarily in local currency, has contributed further to a reduction in Hungary's vulnerability to potential external shocks, including monetary tightening by the U.S. Federal Reserve. We are therefore raising our long-term foreign and local currency sovereign credit ratings on Hungary to 'BB+' and affirming the short-term ratings at 'B'. The outook is stable and balances our assessment of Hungary?s stabilizing economy and relatively steady headline fiscal performance against still-high general government indebtedness and generally less-predictable policymaking. RATING ACTION On March 20, 2015, Standard&

...Overview Hungary's external imbalances have unwound substantially since the onset of the + global financial crisis. The conversion of foreign currency-denominated household mortgage debt into local + currency earlier this year, combined with the government's policy of borrowing primarily in local currency, has contributed further to a reduction in Hungary's vulnerability to potential external shocks, including monetary tightening by the U.S. Federal reserve. we are therefore raising our long-term foreign and local currency sovereign + credit ratings on Hungary to '##+' and affirming the short-term ratings at 'B'. The outook is stable and balances our assessment of Hungary's stabilizing economy + and relatively steady headline fiscal performance against still-high general government indebtedness and generally less-predictable policymaking. raTing acTiOn On March 20, 2015, Standard & Poor's ratings Services raised its long-term foreign and local currency sovereign credit ratings on Hungary...

Ratings Action