Fitch Ratings cut Hungary's credit rating by one notch to BB+ from BBB-, saying the downgrade reflects further deterioration in the country's fiscal and external financing environment and growth outlook caused in part by further unorthodox economic policies.
The rating agency also maintained the negative on Hungary's ratings, indicating a probability greater than 50 percent of another downgrade within the next two years
"A further increase in fiscal and external financing risks and the failure to secure a timely and appropriate IMF agreement could lead to a downgrade," Fitch said in its statement. "A deeper contraction in economic activity than currently expected; evidence of an increase in private sector capital outflows; a material weakening in the government's commitment to fiscal consolidation or destabilizing unorthodox policy measures could also lead to a downgrade."
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