On June 15, 2006, Standard&Poor's Ratings Services 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. Fiscal deficits also contribute to consistently high current account deficits, and this combination poses a risk to macroeconomic stability. Following its reelection in April 2006, Hungary's center-left government has admitted
