News
20.10.2008
S&P SAYS MAY DOWNGRADE HUNGARY, UKRAINE
NEW YORK - Standard & Poor's on Wednesday said it has put the credit
ratings of Hungary and Ukraine on review for a possible downgrade due to
deteriorating financial sector conditions in both countries.
S&P placed Hungary's "BBB+" foreign-currency ratings on "creditwatch
negative" due to concerns over mounting financial-sector funding pressures
and their potential to raise general government debt substantially, from
its current level of 67 percent of GDP.
The ratings agency said it will likely make a decision on Hungary's
ratings before the end of the year, after it studies the effectiveness and
the cost of a package announced by the central bank to shore up the
financial system.
Ukraine's "B+" long-term foreign-currency debt rating was also placed on
"creditwatch negative," as S&P fears a deteriorating economic situation
and associated exchange-rate depreciation may hurt the country's
financial-sector asset quality. A decision about Ukraine's ratings should
be made this month, S&P said.
