Moody’s Put Hungary Under Radar
Moody’s (Ratings agency)have put Hungary on review for a possible downgrade on Friday.On the grounds of increased fiscal risks after it suspended talks with the IMF and EU on its existing $25 billion aid deal.The agency said on Friday it has put Hungary’s current Baa1 rating on review for possible downgrade following the suspension of the euro20 billion ($25.7 billion) loan program from the IMF and the EU.
According to agency -
“Moody’s decision to initiate this review was prompted by the increased uncertainty regarding Hungary’s fiscal outlook and economic prospects,”
“This uncertainty is the result of the recent breakdown of Hungary’s talks with the IMF and EU (after a disagreement over the country’s 2010-11 fiscal deficit targets), which in turn led to a suspension in the next disbursement from the IMF/EU EUR20 billion loan programme for Hungary.”
Accrding to MTI news – Hungary’s credit default swap (CDS) spread was at 335bp in London trade late in the morning on Friday, up from 328 bp at the previous close, analysts for CMA DataVision, a big debt market data provider.