In our view, Hungary's creditworthiness continues to be constrained by the economy's weak growth prospects, limited monetary flexibility, and high stocks of public and private external debt. The rating is supported by the economy's well-diversified economic and export structures, which ensure a relatively stable tax base. We are affirming our 'BB/B' long- and short-term sovereign credit ratings on Hungary, as well as the 'BB' long-term issuer credit rating on the National Bank of Hungary. The outlook remains negative, reflecting at least a one-in-three chance of a downgrade if the policy framework lessens confidence and medium-term economic growth prospects, or significantly raises financing costs and leaves the country exposed to sharply diminished capital inflows. On Oct. 25, 2013, Standard&Poor's
