Moody’s keeps Hungarian credit rating unchanged

A conservative economist criticizes the credit rating company Moody’s for not upgrading Hungary’s rating. A left-wing commentator explains Moody’s decision with the still high volume of public debt.

On Friday, Moody’s maintained Hungary’s Baa3 debt rating status with a stable outlook.

Népszava’s Miklós Bonta explains Moody’s decision to keep Hungary at Baa3 with a stable outlook, with the country’s high public debt. The left-wing commentator acknowledges that Hungarian growth is more robust than in most EU countries. But he thinks that Moody’s decision reflects fears over the slow down of Hungarian GDP growth, the slow decrease of public debt and the fast increase in private loans.

In Figyelő, Csaba Szajlai finds Moody’s decision mistaken. The conservative economist claims that Hungarian macroeconomic indicators would justify an upgrade. Economic growth is fast, he writes, public debt is decreasing in-line with the government’s own estimates, and the country’s banks do well in stress tests.

Tags: credit-rating, debt, economy, GDP, growth