Hungary: Fitch rating review in focus - TDS

Analysts at TDS point out that Fitch is due to review its BBB- (positive) sovereign rating for Hungary today as Moody’s has a Baa3 (stable) rating and S&P a BBB- (positive) rating.

Key Quotes

“Fitch moved the outlook to positive in November of last year mainly on the back of a reduction in the country’s external vulnerabilities. According to Fitch Hungary could be upgraded on the back of a continued reduction in its external vulnerabilities; a sustained decline in state debt relative to GDP; and increased confidence in the economic policy framework. Given that the outlook was moved to positive only back in November, we think they will probably keep the rating unchanged, but an upgrade is possible.”