Bloomberg News

Hungary’s Long-Term Credit Rating Cut to Junk by Fitch

January 06, 2012

Jan. 6 (Bloomberg) -- Fitch Ratings has downgraded Hungary’s long-term foreign- and local-currency ratings by one notch, following similar moves by Standard & Poor’s and Moody’s Investors Service.

Fitch cut Hungary’s foreign-currency debt to BB+ from BBB-, reducing it to junk status, and its forint debt to BBB- from BBB, it said in a statement from London today. The outlook on the grades is negative.

“The downgrade of Hungary’s ratings reflects further deterioration in the country’s fiscal and external financing environment and growth outlook, caused in part by further unorthodox economic policies which are undermining investor confidence and complicating the agreement of a new IMF/EU deal,” says Matteo Napolitano, Director in Fitch’s Sovereign Group.

Link to Statement:{NSN LXDOPQ3PWT1K <GO>}

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