Fitch has cut Hungary’s sovereign credit rating to BBB+ from A–, one of the first times that a new EU member state has had a downward, rather than upward, rating movement applied to it since the EU enlargement process began.
“The downgrade of Hungary’s sovereign ratings reflects the adverse impact of persistently large budget deficits, which have increased the public and external debt burdens,” says Edward Parker, a senior director in Fitch’s sovereign ratings group.
Last year was the third in a row that budget deficits had to be revised substantially up from original targets.
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