The other two global credit rating agencies, Fitch Ratings and Moody’s Investors Service, also score Hungary in the investment grade, a step above S&P’s.
Besides the rating affirmation announced in London, S&P Global Ratings also maintained a stable rating outlook.
Two weeks ago, Fitch Ratings also affirmed Hungary’s sovereign debt rating at “BBB”, also with a stable outlook.
In justifying its decision on affirmation, Standard & Poor’s highlighted its view that the position of the small and open Hungarian economy is now consolidating after the series of external shocks it has suffered.
According to the credit rating agency’s assessment – although monetary and budgetary policies have tightened since last year’s elections, and this is expected to put a burden on consumption for the rest of this year – the growth prospects for the Hungarian economy in the post-2023 period are correct.
S&P analysts stated that according to their forecasts, the Hungarian government will remain committed to fiscal consolidation, which will reduce the public debt-to-GDP ratio in the next two to three years.
Among the factors supporting the outlook, S&P Global Ratings also mentions the base case expectation that the EU will not, in most cases, significantly reduce the EU Fiscal Framework (MFF) 2021-2027, improve flexibility and boost recovery payments. Available for Hungary from the European Union Financial Instrument (ERF).
