Our ratings on Hungary reflect our assessment of its 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. The government's unorthodox policies, including exceptional measures applied to the financial sector, could erode the country's medium-term growth potential. This could eventually undermine the government's efforts to sustainably reduce general government debt. Although we expect the government's fiscal targets to be met in the short term, we believe that this could become increasingly difficult if, as we expect, economic growth remains muted. In our opinion, measures taken in recent months--which continue to place
