S&P Downgrades Hungary's Rating to Junk

Hungary's rating has been downgraded by Standard & Poor's Ratings Services to double-B-plus, it has been announced.

Another credit agency, Moody's, had already downgraded Hungary's rating to junk status in late November.

"The downgrade reflects our opinion that the predictability and credibility of Hungary's policy framework continues to weaken," S&P analysts explained on Wednesday, as cited by The Washington Post.

The Hungarian government headed by PM Viktor Orban has taken measures to gain greater influence over the EU member state's National Bank, while the local Parliament is set to debate a new law regulating the central bank.

According to S&P, the country has a one-in-three chance of another downgrade in the next year if fiscal or external performance deteriorates, The Wall Street Journal informs.

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