S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Hungary in a scheduled review, the outlook remains negative, MTI reports. "The negative outlook reflects our view of risks to Hungary's fiscal and economic stability over the next two years. Large budgetary deficits, high debt, and elevated interest […]

When determining the sovereign ratings, the credit rating agencies also consider the World Bank’s World Governance Indicators (WGI), albeit with different weights. The WGI examines six institutional areas: freedom of speech and accountability, political stability, government effectiveness, regulatory quality, rule of law, and the development of corruption control. GKI Economic Research Institute examined how these […]

Ratings agency Moody's on Monday said it downgraded Budapest's baseline credit assessment (BCA) to ba1 from baa3 and long-term foreign and domestic issuer ratings to Ba1 from Baa3, putting them below investment grade. The capital's mayor considers this downgrade 'obvious' after the government failed to adher to an agreement to meet is financial obligations and […]