Hungary Ratings Raised To 'BBB/A-2' On Solid Growth And External Resilience; Outlook Stable

OVERVIEW Last year marked the sixth consecutive year in which Hungary has reported solid balanced GDP growth. While private debt increased during 2018, both public and overall external debt have continued to decline as a percentage of Hungary's GDP. Unlike previous episodes of strong growth, the Hungarian economy is now less leveraged, the currency floats, and both the government and the private sector finance themselves mainly in local currency. We are therefore upgrading Hungary to 'BBB/A-2' from 'BBB-/A-3'. The outlook is stable. RATING ACTION On Feb. 15, 2019, S&P Global Ratings raised its long- and short-term foreign and local currency sovereign credit ratings on Hungary to 'BBB/A-2' from 'BBB-/A-3'. The outlook is stable. At the same time, we revised our

...OVERVIEW + Last year marked the sixth consecutive year in which Hungary has reported solid balanced GDP growth. + While private debt increased during 2018, both public and overall external debt have continued to decline as a percentage of Hungary's GDP. + Unlike previous episodes of strong growth, the Hungarian economy is now less leveraged, the currency floats, and both the government and the private sector finance themselves mainly in local currency. + We are therefore upgrading Hungary to '###/A-2' from '###-/A-3'. + The outlook is stable. RATING ACTION On Feb. 15, 2019, S&P Global Ratings raised its long- and short-term foreign and local currency sovereign credit ratings on Hungary to '###/A-2' from '###-/A-3'. The outlook is stable. At the same time, we revised our transfer and convertibility (T&C) assessment to 'A-' from '###+'. OUTLOOK The stable outlook balances risks to Hungary's competitiveness from an...

Ratings Action