Hungary Outlook Stable

Fitch Ratings affirmed Hungary?s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BBB-’ with a Stable Outlook, Hungarian news agency MTI reported. Fitch bumped Hungary back into investment grade in May. Standard & Poor?s and Moody’s followed suit in September and November, respectively. Hungary’s ratings reflect the country’s membership in the European Union, strong governance indicators, high GDP per capita and reduced external debt, Fitch said. The ratings are constrained by high state debt, a weak banking sector and a track record of unorthodox economic policy that “has contributed to low private investment and affected growth potential,” it added.