Hungary bonds 'junk' with all three rating agencies
Sunday, 8 January 2012
BUDAPEST, Jan 7 (AFP): Fitch ratings agency piled further pressure on Hungary's embattled Prime Minister Viktor Orban Friday as it joined Moody's and Standard & Poor's in downgrading the EU member's debt to "junk" status.
But Orban, against whom tens of thousands of people demonstrated Monday, defiantly refused to alter new central bank legislation that is holding up agreement on help from the International Monetary Fund and European Union.
Fitch said the cut by one notch in its rating to BB+ -- with a negative outlook-was due to "further deterioration in the country's fiscal and external financing environment and growth outlook."
It said this was "caused in part by further unorthodox economic policies which are undermining investor confidence and complicating the agreement of a new IMF/EU deal."
Key financial indicators, having taken a hammering this week, all recovered slightly, however, with traders saying Fitch's move had been widely expected.
But Orban, against whom tens of thousands of people demonstrated Monday, defiantly refused to alter new central bank legislation that is holding up agreement on help from the International Monetary Fund and European Union.
Fitch said the cut by one notch in its rating to BB+ -- with a negative outlook-was due to "further deterioration in the country's fiscal and external financing environment and growth outlook."
It said this was "caused in part by further unorthodox economic policies which are undermining investor confidence and complicating the agreement of a new IMF/EU deal."
Key financial indicators, having taken a hammering this week, all recovered slightly, however, with traders saying Fitch's move had been widely expected.