The city of Budapest has been cut to junk status by Moody’s, a leading global credit rating agency, in a ratings action that explicitly links the Hungarian capital’s short-term credit risk to liquidity pressure and an ongoing institutional dispute with the national government.
"Moody's Ratings has today downgraded the City of Budapest's Baseline Credit Assessment to ba1 from baa3 and long-term issuer ratings (foreign and domestic) to Ba1 from Baa3. At the same time, the ratings have also been placed on review for further downgrade," the agency said in a statement.
