Rating agency Standard and Poors on Thursday upgraded outlook on Hungary’s BBB+ credit rating from negative to stable. According to S&P the outlook revision reflects the progress in the process of consolidation of public finance. Simultaneously S&P claimed that it does not expect Hungary to join eurozone before 2014.
Our view: We see this news as unambiguously positive as it is after downgrades the first positive signal from rating agency. At the same time we would not overestimate market’s reaction as the upgrade refers only to outlook and not to investment grade, which is right now indeed far from downgrade but as well from upgrade.