On March 30, 2009, Standard&Poor's Ratings Services lowered its long-term foreign and local currency issuer credit ratings on the Republic of Hungary to 'BBB-' from 'BBB'. At the same time, the 'A-3' short-term ratings were affirmed. The outlook is negative. In a related action, the ratings on the City of Budapest were lowered to 'BBB-/ A-3' from 'BBB/A-3'. The outlook is negative. The downgrade reflects the ongoing deterioration in key Hungarian economic and fiscal indicators. Pressure on public finances continues to mount as revenues fall short, the government debt ratio mounts, and the risk of financial sector contingent liabilities materializing increases. The International Monetary Fund (IMF)/EU program provides significant, yet finite support for government funding. Standard&Poor's
