S&P has affirmed Hungary’s BB Rating. BB means “non-Investment grade”, commonly called “junk”.
I think the best thing is just to reblog a post of mine I wrote in last December. The changes since then are as follows:
- Hungary produced the highest GDP growth (3.9%) in Europe in the second quarter of 2014
- the yields on Hungary’s bonds have fallen even more (1.4% on the 3-month T-bills).
Yesterday’s news was that the credit rating agency Fitch affirmed Hungary’s credit rating in the “junk grade”. They really didn’t bother much about the steadily improving macroeconomic figures Hungary has been producing recently (the budget deficit being firmly below 3%, GDP growth becoming stronger than expected, a big trade balance surplus, Hungary’s stopping the growth of its public debt, the slightly decreasing unemployment rate while the economic activity is increasing (!), the all time low inflation rate or the steady demand for Hungary’s treasury bills at an all time low base rate, etc.). The key sentence in their report must have been this: “Fiscal discipline contrasts with unpredictable economic policies, especially with respect to the banking and utilities sectors.” In other words: the Financial Empire strikes back.
Where’s the red bean? (aka the shell game)
Let’s note that the big (US-based) credit rating agencies (Fitch, Standard and Poor’s and Moody’s) …
View original post 156 more words