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S+P affirms Hungary investment grade rating

S+P Global Ratings has affirmed Hungary's investment grade rating in spite of the war and the energy crisis caused by sanctions policies, the Finance Ministry said on Friday.

S+P affirmed Hungary’s ‘BBB-‘ sovereign rating with a stable outlook, showing credit rating agencies’ continued confidence in the Hungarian economy, the ministry said.

S+P delivered a positive assessment of the fast reduction of inflation, the stabilisation of the forint and the improvement of the current account balance, it added.

The rating agency also noted that the government had access to a “broad array” of financing, including a stable domestic banking sector, retail securities and issues on international markets, the ministry said.

S+P pointed to risks related to Hungary’s energy vulnerability, but acknowledged diversification efforts, the ministry said. It also put political debates with the European Commission among challenges Hungary faces, but its analysts expect the start of transfers of EU funding soon, the ministry added.

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