S&P lowers Budapest view to negative

Standard & Poor's said it revised its outlook on the City of Budapest to negative from stable, following the outlook revision on the Republic of Hungary (A-/negative/A-2).

At the same time, the A- long-term and A-2 short-term issuer credit ratings on the city were affirmed, the agency said.

Budapest's economic and financial fundamentals are linked closely with those of the sovereign, due to its role as the capital of Hungary and the country's economic, financial and administrative center, the agency said.

Therefore, its creditworthiness could be affected by the negative tendencies influencing the sovereign rating, S&P said, noting the ratings on Budapest continue to be supported by its high liquidity level, diversified and relatively wealthy economy and sophisticated management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.