Standard & Poor's (S&P) also reviewed and confirmed Hungary's BBB rating, changing the rating outlook from stable to negative due to the risks of the worsening external economic situation. S&P analysts positively mention the Hungarian budget consolidation steps taken in recent months and the government's commitment in this direction, the Ministry of Finance points out in a statement sent to Magyar Hírlap.

Standard & Poor's expects that Hungary's efforts will be sufficient to further reduce the net public debt until 2025. In addition, he speaks highly of the stable Hungarian debt reduction process between 2010 and 2018, the significant reduction of foreign exchange exposure, and the Hungarian results achieved in debt financing.

According to experts, the Hungarian banking system seems to be resilient even in the face of a deteriorating environment. Hungary's competitiveness is also confirmed by ongoing international investments. S&P draws attention to the fact that this favorable trend may further strengthen with the settlement of European economic processes, the ministry points out.

The credit rating agency expects 5.1 percent GDP growth in Hungary in 2022. At the same time, he believes that the energy crisis caused by the Russian-Ukrainian war may have a negative impact on growth. In addition, the S&P analysts mention the possible withholding of EU funds as a factor of uncertainty, saying that they expect the situation to be resolved before the end of the year.

S&P will again change the outlook to stable if the strong economic growth and the resulting improvement in the main balance indicators are maintained, emphasizes the Ministry of Finance.

Among the three major credit rating agencies, Fitch Ratings last examined Hungary's sovereign debt rating in July and, despite the war crisis, confirmed our country's investment rating with a stable outlook. After the outbreak of the Russian-Ukrainian war, credit rating agencies also downgraded the outlook for the Czech Republic and Slovakia from stable to negative, mainly due to regional energy market uncertainties.

Source: Magyar Hírlap

Featured image: S&P