Moody's Investors Services stated that Hungary might face another credit rating downgrade, following the Hungary government stated that talks with the IMF and the E.U. failed to persuade policy makers that the country's deficit-reduction plans are sustainable.
Moody's released a statement saying that Moody's decision to initiate this review was prompted by the increased uncertainty regarding Hungary's fiscal outlook and economic prospects. Hungary's rates will rise if the country got subjected to another credit downgrade.
Hungary's debt reached last year 78.3 percent of the country's GDP that totaled 26.1 trillion forint in 2009, as stated by the central bank.