Published: December 12 2023
Hungary's stable economy has received a positive assessment from S+P analysts. This assessment reinforces the confidence that credit rating agencies have in the Hungarian economy.
Factors contributing to the positive assessment
S+P points out several factors that have contributed to the positive assessment of Hungary's economy. These include the fast reduction of inflation, the stabilisation of the forint, and the improvement of the current account balance.
Access to a variety of financing options
The rating agency acknowledges that the Hungarian government has access to a "broad array" of financing options. This includes a stable domestic banking sector, retail securities, and the ability to issue bonds on international markets.
Energy vulnerability and diversification efforts
While there are some risks related to Hungary's energy vulnerability, S+P recognizes the efforts made by the country to diversify its energy sources.
Challenges and expectations
There are political debates with the European Commission that pose challenges for Hungary. However, S+P analysts expect the start of EU funding transfers to happen soon, which could help address some of these challenges.
Questions & Answers
What rating did S+P give to Hungary's sovereign rating? S+P affirmed Hungary's 'BBB-' sovereign rating with a stable outlook.
What factors did S+P mention in their positive assessment of Hungary's economy? S+P mentioned the fast reduction of inflation, the stabilisation of the forint (Hungary's currency), and the improvement of the current account balance as factors in their positive assessment of Hungary's economy.
What financing options does the Hungarian government have access to? According to S+P, the Hungarian government has access to a "broad array" of financing, including a stable domestic banking sector, retail securities, and issues on international markets.
What risks did S+P point out regarding Hungary's energy vulnerability? S+P pointed out risks related to Hungary's energy vulnerability, but they also acknowledged Hungary's diversification efforts in this regard.
What political debates did S+P mention as challenges Hungary faces? S+P mentioned political debates with the European Commission as challenges Hungary faces. However, S+P's analysts expect the start of transfers of EU funding soon, which could help address these challenges.
