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S+P downgrades Hungary to BBB-

S+P Global Ratings downgraded Hungary's sovereign rating one notch to BBB- from BBB at a scheduled review on Friday.

The outlook on the rating – one notch over the investment grade threshold – is stable.

The rating agency said the downgrade follows “a series of economic shocks” to Hungary in the context of the pandemic and the war in Ukraine which have “impaired the policy flexibility of fiscal and monetary authorities”.

S+P said the stable outlook on the sovereign rating reflects its expectations that Hungary’s economy will “avoid a substantial economic downturn” over the next two years and weather the indirect effects of the war in Ukraine.

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