FRANKFURT (Standard&Poor's) Sept. 24, 2007--Standard&Poor's Ratings Services said today it affirmed its 'BBB+' long-term and 'A-2' short-term sovereign credit ratings on the Republic of Hungary following sustained progress toward fiscal consolidation. The outlook is stable. "The ratings on Hungary are supported by a comparatively wealthy economy, one that is well integrated with the EU and has well-diversified economic and export structures," said Standard&Poor's credit analyst Kai Stukenbrock. "Nevertheless, the ratings remain constrained by very high fiscal deficits and high and rising government debt levels, as well as a large external debt burden." The administration should reduce the general government deficit to 4.3% of GDP by 2008, in line with Hungary's EU convergence program targets.
