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Moody’s Affirms Hungary Baa3 Ratings, Changes Outlook to Positive

MTI-Hungary Today 2020.09.26.

Moody’s Investors Service affirmed Hungary’s Baa3 sovereign ratings and changed the outlook on the ratings to positive from stable at a scheduled review on Friday.

“The key drivers for the change in outlook to positive are the strong recent and prospective performance of the economy relative to Baa3- and Baa2-rated peers, with related improvements to the domestic and external debt position,” Moody’s said.

Negative Growth and Higher Inflation Predicted by Hungary's National Bank in Revised Forecast
Negative Growth and Higher Inflation Predicted by Hungary's National Bank in Revised Forecast

The National Bank of Hungary now expects the economy to contract between 5.1 and 6.8% this year and annual inflation to be 3.5-3.6%, according to its latest quarterly Inflation Report released on Tuesday. Assuming a V-shaped, rapid recovery from the economic downturn caused by the coronavirus pandemic, the institution previously forecast an annual GDP growth […]Continue reading

“While strong economic growth and government debt reduction have inevitably been derailed by the coronavirus crisis, the impact on Hungary’s credit profile has been more limited than elsewhere,” it added.

featured image via MTI/EPA/Ian Langsdon