Fitch affirms Hungary at ‘BBB-‘ with positive outlook
Credit ratings agency Fitch maintained Hungary’s investment grade rating at ‘BBB-‘ on Friday, citing the country’s sustained current account surpluses and net equity FDI inflows and EU capital inflows.
“Hungary’s ratings balance strong structural indicators compared with ‘BBB’ peers against higher public and net external debt, and risks from policy unpredictability and pro-cyclical fiscal policies,” the ratings agency said.
Hungary’s foreign currency debt has significantly decreased in recent years, as the government shifted debt financing towards domestic issuance. This, coupled with a current account surplus has reduced the economy’s vulnerability.
Fitch also reiterated the Central European nation’s outlook at positive citing improving trend on net external and government debt.
