LONDON (Standard&Poor's) June 15, 2006--Standard&Poor's Ratings Services said today it lowered its long-term sovereign credit ratings on the Republic of Hungary to 'BBB+' from 'A-'. At the same time, the 'A-2' short-term ratings on Hungary were affirmed. The outlook is negative. A related commentary article titled "Hungary Fiscal Deterioration Outweighs Impressive Consolidation Efforts," will be published later today on RatingsDirect, Standard&Poor's Web-based credit analysis system. "The downgrade reflects the continued deterioration of Hungary's public finances, as evidenced by very high general government deficits and quickly rising government debt figures," said Standard&Poor's credit analyst Kai Stukenbrock. "Fiscal deficits also contribute to consistently high current account deficits, and this combination poses a risk to
