freelogoOur objective is to provide English speaking readers interested in Hungary with a well balanced view of political activities in Hungary by featuring contents from various printed and online sources together with our own commentaries. We are convinced that Hungary is built on all sorts of different ideas, thoughts and opinions and, despite of the new Media Law, our aim is to provide an alternative and reliable source of information – contrary to the one-sided press of the government – for those who want to hear the voice of a free Hungary.

S&P places Hungarian ratings on CreditWatch

As Standard & Poor’s lowers Hungary’s already negative outlook rating, Népszabadság urges the government to call off the propaganda, while Magyar Nemzet believes that the decision disregards the efforts made by the government. “Enough of the propaganda” – writes Népszabadság in a front page editorial, reacting to a comment from the PM’s spokesman, that Hungary ‘needs no new loans’ from the International Monetary Fund. “We are facing restrictions disguised as reshuffles on a more brutal, crueller scale than anything the IMF would have imposed,” – argues the left wing daily, noting that investors hardly bought any of the government bonds auctioned on Monday, while the Forint was stuck around its all-time low (317) to the Euro. (6 week liquidity bonds sold badly because the market expected a rise in interest rates, but a 3 month bond auction was successful on Tuesday.)
Standard & Poor’s have already decided that whatever happens, Hungary will be downgraded – believes Magyar Nemzet. Columnist Tamás Nánási remarks that the downgrade would cause huge damage to the country and to its citizens, including all those hostile to the present government. The cabinet’s half-turn in recent weeks (a compromise with the banks – See BudaPost, November 7) was futile, Nánási believes, for it did not avert the danger of a  downgrade. The credit rating agencies, he continues, intend to downgrade Hungary’s sovereign debt “in order to force us back into the arms of the IMF.” But going back there “would entail a price much higher than what we are forced to pay for following our own path,” – Magyar Nemzet concludes.

Standard&Poor's Ratings Services on last Friday placed its 'BBB-/A-3' foreign and local currency sovereign credit ratings on Hungary on CreditWatch with negative implications. At the same time, it has placed the 'BBB-' long-term counterparty credit rating on the National Bank of Hungary (NBH) on CreditWatch with negative implications. A few hours before S&P, anther rating agency, Fitch, revised the Outlooks on the country’s Long-term foreign and local currency Issuer Default Ratings (IDR) to Negative from Stable and affirmed the ratings at 'BBB-' and 'BBB', respectively. Being placed on CreditWatch with negative implications is an even stronger negative message than the downward revision of the outlook. It may mean that Hungary has no chance of proving S&P wrong and a downgrade to junk grade is unavoidable.
Source: Portfolio.hu, Budapost.eu

Last Updated on Friday, 30 August 2013 09:11

Newsletter

Comments

Written on 06/10/2016, 19:58 by admin
guest-post-the-day-after-the-referendumThe much anticipated referendum about the resettlement of migrants in Hungary was declared invalid, however, those who voted overwhelmingly rejected the...
Written on 23/06/2016, 06:31 by admin
disintegration-or-something-else-gyurcsany-s-solutions-to-the-ills-of-western-democracies  Something has gone wrong. Quietly, but ever more noticeably, more and more people in more and more places are in revolt. In the American...
Written on 06/04/2016, 19:20 by admin
how-germany-and-its-leftist-liberal-supporters-killed-solidaritySolidarity. This is the word that is probably is the most used and misused term in European politics. Its original meaning is supposed to mean to show...
Written on 23/03/2016, 20:30 by admin
the-orban-regime-can-only-end-in-failure  Change in the Orbán regime is only possible in the event of its downfall, so ruling Fidesz either becomes successful with its current set of...
Written on 23/03/2016, 20:20 by admin
anger-or-resignation  No matter how hard Mr Orbán is trying to get rid of his old cronies, he just cannot get rid of himself. He is too old for his system. The...
Written on 14/01/2016, 20:51 by admin
europe-s-new-yearThe European continent had a very difficult year in 2015, but that may be dwarfed by 2016. The most heated issue will be, without a doubt, the migration...
Written on 09/12/2015, 14:16 by admin
the-secret-diaries-of-viktor-orban-nov-dec-2015November 14th 2015I awoke to the shocking news about the Paris attacks last night. Words cannot express my feelings of shock.It turns out that one of the...
Written on 12/11/2015, 14:31 by admin
spies-in-the-newsroom   According to a new scheme, the government might place spies in the newsrooms, to have a better view of what is being written. This all...
Written on 29/10/2015, 20:02 by admin
greczy-s-blog-many-for-hungary  Some may want to do so, but DK will not write off its plans to win 2018 elections and to have a desperately needed co-operation with other...
Written on 10/09/2015, 18:07 by admin
ferenc-gyurcsany-and-the-refugees  He does what is not done by any other politician. He accommodates refugees in his home. He gives clothes that his children have outgrown to them,...
Joomla templates by Joomlashine