The major credit rating agency continues to recommend Hungary for investment – news from Debrecen, news from Debrecen | Debrecen and Hajdú-Bihar county news
The major credit rating agency continues to recommend Hungary for investment
London – Changing the rating outlook from stable to negative due to the risks of the worsening external economic situation.
Standard & Poor’s (S&P) also revised and confirmed Hungary’s BBB rating, changing the rating outlook from stable to negative due to the risks of the worsening external economic situation.
The S&P analysts positively mention the Hungarian budget consolidation steps taken in recent months and the government’s commitment in this regard, reads the statement of the Ministry of Finance.
Standard & Poor’s expects that Hungary will have enough to further reduce the net public debt until 2025.
speaks highly of the stable Hungarian debt reduction process in 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 as European economic processes settle down.
The credit rating agency expects a 5.1 percent GDP growth in Hungary in 2022. He believes that the Russian-UK war energy crisis could negatively affect growth. In addition, the S&P analysts mention the possible withholding of new 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 strong economic growth and, as a result, improvements in key balance indicators are maintained.
In July, Fitch Ratings, the three major credit rating agencies, examined Hungary’s sovereign debt rating and, despite the war crisis, confirmed Hungary’s investment rating with a stable outlook. After the outbreak of the Russian-Ukrainian war, the credit rating agencies also downgraded the outlook for the Czech Republic and Slovakia from stable to negative, mainly due to regional energy market uncertainties.
Investors continue to trust the Hungarian economy.
In order for this to remain the case, a unified agreement would be necessary.