"Fitch might downgrade Hungary because it believes that government plans concerning private pension funds will have negative effects on the sustainability of the budget, director of the credit rating agency David Heslam told news agency Bloomberg.Fitch currently puts BBB rating with negative outlook on Hungary’s sovereign debt, which is the second lowest “invest” grade. This measure can improve the short-term outlook on budget financing, he added.
Although Hungary has made substantial budget adjustment measures since 2006, even by global comparison, this is now being undermined by the government’s short-term and temporary measures, Heslam argued.
As steady expenses are financed by temporary tax hikes, the initial signs are not the best, Heslam added."
Source: Hungary Around the Clock
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29.11.2010