S&P Global Ratings did not change Hungary’s debt rating; in its Friday evening decision, the credit rating agency left the BBB minus rating with a stable outlook.
The decision did not come as a surprise, experts did not expect an upgrade or a downgrade, as there was no reason for either. However, the revision of S&P Global Ratings was definitely important, because among the three major credit rating agencies, they have the worst rating for Hungary, the BBB minus rating, which is one grade above the limit of the category recommended for investment.
In addition, a possible negative decision would have exerted lasting pressure on the forint exchange rate and would have restrained the MNB’s interest rate cuts.
By the way, the other two major credit rating agencies will decide soon, Moody’s on the last day of May, Fitch Ratings in mid-June. Currently, both credit rating agencies consider Hungary in a slightly better category than S&P, the former in Ba2, the latter in BBB, with a negative outlook.
