Fitch On Hold

The credit rating agency Fitch are adopting a wait and see attitude towards Gyurcsány's reform package before taking any decision on an adjustment in the sovereign rating:

Hungary's credit rating depends on Prime Minister Ferenc Gyurcsány's ability to push his fiscal reform package, Fitch ratings agency's sovereign ratings analyst Edward Parker said on Friday.

"We think they will make some good progress but the Prime Minister's lie dented his personal authority and obviously implementing the policies are unpopular," Reuters cited Parker as telling reporters at a Fitch conference on emerging markets.

Fitch has assigned Hungary a sovereign rating of BBB+ with a negative outlook.

"The rating depends on if the prime minister can reduce the deficit and stabilise the economy. We think the government can make progress on reducing the deficit. Our central scenario remains that they reduce it from 10% (of GDP) to around 4.5% to 5% by 2008," Parker said.