The Japan Credit Rating Agency (JCRA) has upgraded Hungary's credit rating, it has been revealed.
The news comes after three of the most influential credit rating agencies in the world upgraded Hungary's rating in 2016. Fitch was the first to upgrade Hungary to investment grade in May, followed by S&P in September then Moody's in November.
The JCRA agency has announced that they revised Hungary's rating of foreign currency denominated debt from “BBB” to “BBB+”, while forint denominated debt has been increased from “BBB+” to “A”.
Analysts from the agency visited Hungary at the end of January where they evaluated the six-year wage and tax reduction agreement and examined the change in the composition of state debt.
The JCRA Inc. agency, established in 1985, has become renowned throughout the world as a measure of economic success. It provides primarily Japanese investors with credit ratings and analyses, but is also used as a measure by other entities.
Experts say the upgrade is important for Hungary’s debt issued in Japanese Yen. The Japanese agency is one of the very few which has consistently maintained Hungary’s investment grade status.
“Hungary’s economy is on an upward path and the recent upgrade by Japan Credit Rating Agency (JCR) will help Hungary to reduce risks while maintaining economic growth and a stable budget," Mihály Varga, minister for National Economy, said. The minister added that JCRA’s decision indicated a positive image of Hungary.
"The upgraded ratings are a reflection of last year’s economic performance, the government’s disciplined fiscal policies, the continually falling public debt as well as the six-year program of tax cuts and wage hikes," the minister said, adding that all this will mean that Hungary’s economic growth will strengthen in 2017 and 2018.