FRANKFURT (Standard&Poor's) June 4, 2008--Standard&Poor's Ratings Services said today it assigned its 'BBB+' senior unsecured debt rating to the Republic of Hungary's (BBB+/Negative/A-2) proposed benchmark size euro bond due in 2018. The ratings on the Republic of Hungary are supported by a comparatively wealthy economy, with well diversified economic and export structures, that is well integrated with the EU. The ratings remain constrained by high fiscal deficits and high and rising government debt levels, as well as a large external debt burden. The negative outlook on the ratings since March 14, 2008, reflects increasing political uncertainty, and incentives and pressure to dilute the fiscal reforms ahead of upcoming elections, as well as the deteriorating prospect of
