S&PGR Lowers Hungary Outlook to Negative, Cites External Pressures
By Stephen Nakrosis
S&P Global Ratings on Friday said it was lowering its
outlook on Hungary to negative from stable, citing external
pressures which could "significantly weaken Hungary's economic and
S&P also said it was affirming its 'BBB/A-2' sovereign
credit ratings on Hungary.
Among the external risks cited by S&P was energy supply,
especially from Russian sources. According to the agency, "Hungary
is currently seeing the largest negative effects from higher prices
due to the energy crisis in Europe." S&P also said Hungary's
energy import dependence is particularly high, "with the country
sourcing roughly half of its oil imports and over 80% of its
natural gas imports from Russia."
S&P also noted a rise in political tensions between Hungary
and the European Commission, which has delayed disbursement of EU
funds from the Recovery and Resilience Facility "and the triggering
of the Rule of Law Conditionality Mechanism by the EC."
S&P said it could revise the outlook back to stable "if
external pressures remain manageable." Hungary's ratings could be
lowered if "significant delays or substantial cuts to EU funds
occur or the supply of energy to the country is meaningfully
constrained," S&P said.
Write to Stephen Nakrosis at firstname.lastname@example.org
(END) Dow Jones Newswires
August 12, 2022 17:11 ET (21:11 GMT)
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