OVERVIEW After nearly a decade of suppressed demand, the Hungarian economy is recovering on the back of increased export capacity, flattering base effects, and impermanent factors, especially generous EU funds. Medium-term prospects remain clouded by the government's policy mix and a shrinking population. 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 Sept. 19, 2014, 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 (NBH). The outlook remains stable. RATIONALE The affirmation reflects our assessment of Hungary's comparatively
