The credit rating agency will be discussing the Hungarian rating on Friday and experts seem confident that the country can once again be rated as recommended for investment.
Fitch Ratings recently sent some of its colleagues to Budapest and according to Mihály Varga, the Hungarian Minister of National Economy they left with positive experiences and assured about the positive Hungarian trends.
Fitch along with the other two great rating agencies, Moody's Investors Service and Standard & Poor's registers Hungary one level below the recommended category. But Fitch and Moody's also maintains positive prospect for Hungary, which means there is a possibility of upgrading the country's national debt in the near future.
Fitch itself noted recently in a report that Hungary could be the next country to be upgraded into the recommended category, along with Portugal which is currently in the same "junk" category, but with positive prospects.
Moody's improved the prospects of Hungary just two weeks ago from stabile to positive, because they expect the rate of national debt to maintain a downward tendency in the following years.
In their analysis attached to the report they state that the debt to GDP ratio – which was 81% at its highest in 2011 – will decrease to 74.3% this year and to 73% in 2016.
Upgrading can become a reality for all the credit rating agencies if they conclude that positive trends that helped to decrease the debt to GDP ratio will hold up in the following years. Currently experts say that there are very good chances the all three agencies will upgrade Hungary's ranking based on their methodology and recent positive statements.
(Sources: http://hvg.hu/gazdasag/20151119_Kiloheti_a_Fitch_Magyarorszagot_a_bovlibo
http://www.portfolio.hu/gazdasag/magyarorszag_hitelminositesenek_kulisszatitkai.4.222738.html)
