In our view, the predictability of Hungary's policy framework continues to weaken, which could affect the country's medium-term growth prospects. We are therefore lowering our long-term foreign and local currency sovereign credit ratings on Hungary to 'BB' from 'BB+' and our long-term counterparty credit rating on the National Bank of Hungary (the central bank) to 'BB' from 'BB+'. The stable outlook balances our assessment of Hungary's still-high fiscal and external liabilities and recurrent use of unorthodox, and possibly unsustainable, economic policies against its success in reducing fiscal deficits to less than 3% of GDP and containing external liquidity pressures by achieving current account surpluses. On Nov. 23, 2012, Standard&Poor's Ratings Services lowered its long-term foreign and local currency
