Hungary upgraded by leading rating agency

Standard & Poor's has raised Hungary's rating by one notch to BBB- from BB+ and has lifted the country out of 'junk status'

Hungary's credit rating has been upgraded by a leading rating agency.

Standard & Poor's says it has lifted Hungary's sovereign debt rating out of "junk status" after upgrading the country's growth projections.

Standard & Poor's raised Hungary's rating by one notch to BBB- from BB+ as it increased the country's average annual growth forecast through 2019 to 2.5 percent from 2 percent.

The latest upgrade, which could make it cheaper for Hungary to borrow money in international markets, comes after a similar move in May by Fitch.

However, Moody's, the third of the major rating agencies, still has Hungarian debt in the non-investment category. This grade is expected to be changed.

Standard & Poor's said key measures of Hungary's economy "have improved markedly" since 2008 when Hungary sought financial help from its partners in the European Union and the International Monetary Fund.

The rating agency concluded with the statement that the outlook for Hungary's rating remains "stable."