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Hungary sovereign rating affirmed by Fitch, outlook changed to negative

Credit rating agency Fitch Ratings has affirmed Hungary's investment grade sovereign rating but has changed the outlook to negative from stable due to the tougher international environment, the finance ministry said on Saturday.

Commenting on Fitch’s Friday review, the finance ministry cited the agency as highlighting Hungary’s significant reduction of its public debt and budget deficit. Fitch also sees the economy avoiding a recession for the year as a whole, the ministry said in a statement.

Fitch’s changing of Hungary’s outlook shows that the political disputes generated by the European Commission and the uncertainties caused by the war and the “sanctions-fuelled energy crisis” are also reflected in the reviews of rating agencies, the ministry said.

It noted that Hungary has investment grade status from all three major credit rating agencies.

Fitch said higher global interest rates, volatile energy prices and weakening demand in Hungary’s key export markets is exposing vulnerabilities stemming from a policy mix that is “influenced by political considerations”.

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