OVERVIEW The Hungarian domestic economy is stabilizing after half a decade of external deleveraging. We have revised upward our average GDP growth expectations for 2014-2015 to about 2%. Steady export performance amid a multi-year credit crunch, alongside absorption of EU funds, have shifted the current and capital accounts into surplus, reducing external vulnerabilities. We are therefore revising our outlook on the long-term sovereign credit ratings on Hungary to stable from negative. We are affirming our 'BB/B' ratings on Hungary. The stable outlook reflects our view that the risks to Hungary's creditworthiness are balanced. RATING ACTION On March 28, 2014, Standard&Poor's Ratings Services revised its outlook to stable from negative on the long-term sovereign credit ratings on Hungary. At
