Fitch Ratings’ international credit rating confirmed Hungary’s BBB-level investment grade sovereign rating on Friday with an unchanged stable outlook, the telegraph office said. The international credit rating agency Standard & Poor’s also confirmed the BBB / A-2 investment grade sovereign rating of Hungary with an unchanged stable outlook.
– As expected, none of the credit rating agencies changed the rating of the Hungarian government debt. Although the economic situation caused by the restrictions imposed by the coronavirus has resulted in uncertainty and a downturn in the economy, public debt financing is stable, and the increase in risks is not significant in this respect, Gábor Regős, head of the Macroeconomic Business Unit, responded to the announcements. Indicated by:
this is due to the reduction in debt-to-GDP ratios in recent years and the improvement in the financing structure, in particular through the reduction in the ratio of foreign currency debt to foreign debt.
He added that in order for the country to have a positive outlook, it is necessary to restart the economy as soon as possible, loosen restrictions and return to fiscal discipline and a sharp reduction in public debt as a share of GDP.
Standard & Poor’s highlighted that it expects Hungary’s gross domestic product (GDP) to grow by 4.6 percent this year. He estimates that the performance of the Hungarian economy fell by 6.3 percent in real terms last year due to the crisis caused by the coronavirus epidemic. According to a slightly more optimistic forecast from Fitch Ratings, Hungary’s GDP will expand by 4.9 percent this year.
Source: Magyar Nemzet by magyarnemzet.hu.
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