The agency revised the country’s rating of foreign currency denominated debt upward from “BBB” to “BBB+” and that of forint denominated debt from “BBB+” to “A”, by one notch each, with stable outlook. The JCRA’s decision also confirms that Hungary has been growing stronger, and the economy’s performance is being recognized abroad.

The JCRA Inc., established in 1985, provides primarily Japanese investors with credit ratings and analyses. Therefore, the upgrade is important mainly for Hungary’s debt issued in Japanese Yen. The Japanese agency is one of the very few which has consistently maintained Hungary’s investment grade status.

Analysts of the Tokyo-based agency visited Hungary at the end of January. They have evaluated the six-year wage and tax reduction agreement and examined the change in the composition of state debt.

The implementation of prudent fiscal policy and improving economic performance had first impressed markets; later on credit rating agencies have also acknowledged Hungary’s results in 2016. The first of the big three to have restored the country’s investment grade status was Fitch in May 2016, followed by S&P in September and Moody’s in November last year.

(Ministry for National Economy)