Sustained fiscal consolidation has limited the deterioration in Hungary's public finances, despite the pronounced economic contraction. The government's access to market-based funding is gradually normalizing. We are revising the outlook on the ratings to stable from negative. On Oct. 2, 2009, Standard&Poor's Ratings Services revised the outlook on the Republic of Hungary to stable from negative. At the same time, we affirmed the 'BBB-/A-3' foreign and local currency sovereign issuer credit ratings. The transfer and convertibility assessment on Hungary remains at 'A-'. The change in the outlook reflects our view that sustained consolidation efforts will contain the deterioration in the Hungarian government deficit despite the downside pressures on the economy. The gradual normalization of domestic and international bond
