S&P affirmed its BBB-/Stable sovereign rating for Hungary yesterday

HUNGARY - In Brief 26 Oct 2024 by Istvan Racz
This was very much in line with our expectation, but apparently not so with everyone else's. The fact that EURHUF ran slightly above 404 (yes, this page can be found on the internet) ahead of the decision shows quite clearly just how much the government needs to watch its steps with regard to complying with its medium-term program to reduce the fiscal deficit. Sensitivity on the market appears to be rather high at this moment. Other than this, S&P's macro forecast appears to be reasonably business as usual, far from being alarmist, just as it should be for a rating agency. They see the risk regarding MNB policy next year, but they do not over-emphasise it. They also see the election-related risk of potential fiscal overruns, just as everyone else does. They also see the risk about the availability of EU funds, but - to some extent on a hope-dies-last basis - they are still talking mainly about delays, rather than Hungary eventually losing access to EU transfers. 

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