Hungary govt denounces Moodys downgrade as financial attack.

By bne IntelliNews November 28, 2011
Hungarys economy ministry has denounced the downgrade of credit agency Moodys on countrys debt to junk grade as a financial attack, MTI news agency reported. Moody's lowered Hungary's foreign and local currency government bond ratings by one notch to Ba1, the highest junk level, with a negative outlook. The ministry claimed the economy is moving in the right direction, despite the difficulties due to external shocks, and noted that the current account and fiscal balance will be on the positive side at end-2011. In light of a possible deepening of the European debt crisis and consequent slowdown in the economic growth, Hungary has planned reserves of 1% of the GDP in the 2012 budget, which will endure that the fiscal target will be met, the ministry added. At the same time, Hungarian central bank declared it would stick to its policy of not making any comments on the actions of the rating agencies. The markets, on the other side, reacted sharply, with forint weakening considerably and coming near to its all-time low of 317.9 forint for euro, before rebounding slightly, portfolio.hu informed. The credit default swap spread reached 644bps versus 603.8bps on the previous close, reflecting how the cost of insuring Hungarys bonds rose after the announcement of the downgrade. The previous highest value was reached in March 2009 in the midst of the financial crisis.

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss