Hungary’s sovereign rating is included in E-money Ratings’ international credit rating review list for next week, but it is not necessarily certain that the company will actually change its Hungarian sovereign rating or its currently stable outlook.

As with other credit rating agencies


E-money has pre-set this year’s schedule for reviewing sovereign debt ratings. The next review of the Hungarian rating on the company’s list is due on Friday, November 28th.
This will be the final, planned review of the Hungarian sovereign debt rating this year; Hungary is no longer in the remainder of the 2014 review schedules of the three major international credit rating agencies – E-money, Good Finance’s Investors Service, Standard & Poor’s.
Unless there is an extraordinary development that requires an immediate rating step, credit rating agencies will only be able to carry out debt rating steps for EU sovereign debtors at predetermined dates, according to EU regulation after the financial crisis.

In line with established practice


companies set two or three review dates per government debtor each year, usually Friday, and review results are usually announced on the night of the designated day, following market closures in London and New York.
However, the proposed review date does not imply that the credit rating agency will, in any event, announce a rating step for the sovereign debtors concerned on the scheduled date.

Predefining a date does not oblige credit rating agencies to announce actual rating or outlook steps on a designated date.
On June 6, E-money Ratings carried out a previous review of the Hungarian sovereign debt rating; the company then confirmed Hungary’s sovereign ratings with a stable outlook.
Standard & Poor’s also strengthened Hungary’s debt rating at its September 19 deadline, which had improved its outlook from the previous downgrade, suggesting a downgrade.

Good Finance’s Investors Service reviewed

Good Finance

For the second time this year – the Hungarian ratings, and then improved the outlook for the Hungarian debt rating from negative to stable.
Following Good Finance’s move two weeks ago, the Hungarian sovereign debt rating is now on a stable track record in all three major international credit rating agencies.
Hungary is currently ranked by Standard & Poor’s among the three companies with the lowest rating: this rating has a long-term and short-term Hungarian sovereign debt rating of “BB / B”.

The long-term “BB” Hungarian rating in the S&P list is two grades lower than the bottom of the investment-recommended band, one weaker than the sovereign rating of Good Finance’s and E-money.
Good Finance’s “Ba1” long-term Hungarian sovereign rating is identical to E-money Ratings’ “BB plus” long-term Hungarian sovereign debt rating based on the rating method used by this company.