World Economy

Hungary Upgrades Feasible

Hungary Upgrades FeasibleHungary Upgrades Feasible

Hungary’s economy minister said he expects the nation’s credit to be raised by two other rating companies after it regained investment-grade status from Fitch Ratings, Bloomberg reported. Fitch became the first of the largest three credit assessors to reward Prime Minister Viktor Orban’s push to reduce public debt and reverse measures that contributed to downgrades five years ago. “We expect a similar positive decision by the other two main rating companies after the upgrade by Fitch,” Economy Minister Mihaly Varga told reporters Saturday in Budapest. Fitch late Friday raised the nation’s long-term rating to BBB- from BB+, assigning a stable outlook. That leaves it on par with Bulgaria, Romania and Russia. Moody’s Investors Service and S&P Global Ratings both have Hungary one step short of investment grade. If at least one more rating company upgrades Hungary, debt financing may be about 40 billion to 60 billion forint ($146 million-$214 million) lower in the next 12 to 18 months, he said.