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Aug 07, 2018

Hungary could receive an upgrade of its sovereign rating next week

National Bank of Hungary (NBH) deputy governor Márton Nagy said the upgrade is expected when Standard & Poor’s review is next scheduled

Hungary could receive yet another upgrade of its sovereign rating as soon as next week, it has been revealed.

National Bank of Hungary (NBH) deputy governor Márton Nagy said the upgrade is expected when Standard & Poor’s review is next scheduled.

According to MTI, the three big rating agencies have left Hungary’s ratings one notch above the investment grade threshold. S+P is scheduled to review Hungary’s sovereign rating on August 17th, while Reviews by Fitch and Moody’s are set to follow on August 31st and November 23rd, respectively.

Márton Nagy said that Hungary’s latest economic fundamentals would put the country up another notch. He said the reduction in Hungary’s external vulnerability and the improvement in its growth outlook have played a decisive role in positive ratings actions in recent years.

According to MTI, Hungary’s net external debt and the pace of its real GDP growth, which are two indicators of key importance for Fitch, are close to the average of countries with either a similar rating or a rating one notch above Hungary’s.

Nagy also noted that both Fitch and S+P have had “positive” outlooks on their ratings for Hungary for almost a year, the average period after which an upgrade generally follows. The outlook on Moody’s rating for Hungary is currently “stable.”