LONDON (Standard&Poor's) May 17, 2004--Standard&Poor's Ratings Services said today it affirmed its 'A-/A-2' foreign currency ratings and 'A/A-1' local currency ratings on the Republic of Hungary. The affirmation reflects Hungary's competitive economy, its moderate public sector external debt burden, and external liquidity indicators. The outlook is stable. "The ratings are supported by Hungary's competitive and well-diversified economy and export sector, the moderate external government indebtedness, and comfortable external liquidity ratios," said Standard&Poor's credit analyst Beatriz Merino. Nevertheless, the government faces the challenge of reducing the fiscal deficit and debt levels, and further reducing inflation. Looking ahead, Ms. Merino said, "The government's commitment to reverse recent fiscal imbalances is expected to continue and should result
