S&P affirms Budapest

Standard & Poor's said it affirmed its A- long-term and A-2 short-term issuer credit ratings on Hungary's capital city of Budapest.

The outlook is stable.

The ratings reflect improved, albeit still volatile, financial performance of the city in line with expectations. Direct debt accumulation has been slow, but is expected to continue as the city implements its numerous infrastructure projects, S&P said.

The city's high liquidity, diversified and relatively wealthy economy and sophisticated management continue to support the ratings. On the other hand, uncertainty regarding the upcoming local and regional government financing reform and the liability accumulated by the local transport company, BKV, and its continued operating losses, represent constraining factors, S&P said.

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