NY -- Standard&Poor's CreditWire 12/11/98 -- Standard&Poor's today raised its long-term sovereign ratings on the Republic of Hungary. Standard&Poor's also affirmed its short-term sovereign ratings on the republic. (see list below). The outlook on the long-term local currency rating is revised to stable from positive. The outlook on the long-term foreign currency rating remains positive. The ratings and positive outlook reflect: -- Steady progress in microeconomic reforms which created a modernized and competitive industrial and financial infrastructure. Extensive privatization and deregulation of key economic sectors, including manufacturing, energy, electricity, telecommunication, and banking opened the economy to a significant foreign presence (foreign direct investment account now for 37% of GDP) and subsequent technology and know-how
