Fitch cuts Hungarian debt to junk status

Credit ratings agency Fitch has cut Hungary's long-term foreign and local currency debt to junk status, following a tumultuous week for the country.

Fitch, following similar moves by Moody's and Standard & Poor's, has cut foreign-currency debt to BB+ from BBB and forint debt to BBB- from BBB, while placing a negative outlook on the grades. Matteo Napolitano, a director in Fitch's Sovereign Group, said: "The downgrade of Hungary's ratings reflects further deterioration in the country's fiscal and external financing environment and growth outlook, caused in part by further unorthodox economic policies which are undermining investor confidence and complicating the agreement of a new IMF/EU deal." Fears the country will be the first i...