25 Nov '11, 12am

Moody's downgrades Hungary govt bonds

Moody's downgrades Hungary govt bonds

NEW YORK: Moody's on Thursday downgraded Hungary's government bonds by a notch to Ba1 with a negative outlook, the ratings firm said. "Moody's Investors Service has today downgraded Hungary's government bond rating by one notch to Ba1 from Baa3, and is maintaining a negative outlook," it said. The ratings firm said the main reason for the downgrade was "the uncertainty surrounding the Hungarian government's ability to meet its targets on fiscal consolidation and public sector debt reduction over the medium term, in view of higher funding costs and the low-growth environment." It also cited the government high debt burden, heavy reliance on foreign investors and large financing needs at a time of market volatility as increasing its susceptibility to "event risk." The lower rating means that Moody's still believes Hungary is capable of meeting its obligations, but its govern...

Full article: http://www.channelnewsasia.com/stories/afp_world_business...

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