Hungary ratings unaffected by election result for now, but creditworthiness could benefit over time - S&P

http://portfolio.hu/en/cikkek.tdp?k=2&i=19986

Standard & Poor's Ratings Services has said in a bulleting on Monday that the outcome of general elections in Hungary (centre-right Fidesz winning a two-thirds legislative majority) has no immediate impact on the country’s ratings (BBB-/Stable/A-3), adding that improvements in Hungary’s creditworthiness depend on what policies the new cabinet will have and how it will implement these.

The two-thirds majority of parliamentary seats gained by centre-right opposition party Fidesz should enable the new government to implement "far-reaching administrative and fiscal reforms" that require a constitutional change, S&P reminded.

"Should the government choose to implement such potentially unpopular reforms, such as reforming the municipality system and reducing the overprovisioning of public services, we believe this would eventually contribute to strengthening Hungary's public finances, and could support rating improvements over the medium term."

"Ultimately, however, we believe improvements in Hungary's creditworthiness will depend on the government's overall policy agenda and policy implementation, including the perspective for the evolution of government deficits and debt levels."

S&P expects the government to present these in more detail over the coming weeks and months.