Standard&Poor's Ratings Services lowered its long-term local currency sovereign credit and senior unsecured debt ratings on the Republic of Hungary to 'A' from 'A+' on Nov. 19, 2002. The downgrade reflects rising concerns over the government's ability to meet its medium-term fiscal deficit targets following the substantial fiscal expansion over the past two years. At the same time, Standard&Poor's affirmed all its other ratings on Hungary, including its 'A-' long-term foreign currency sovereign credit rating. The outlook is stable. The ratings on the Republic are supported by: The government's continued commitment to structural reforms and market-oriented policies. These underpin Hungary's preparations for EU membership, which is expected no later than 2005. The development of a dynamic
