Moody's puts Hungary on notice for rating cut

[July 23, 2010]  LONDON (AP) -- Moody's Investor Services has warned it may be downgrading its view on Hungary's debt position following the recent breakdown of the country's talks with the International Monetary Fund and the European Union.

The agency said Friday it has put Hungary's current Baa1 rating on review for possible downgrade following the suspension of the euro20 billion ($25.7 billion) loan program from the IMF and the EU.

Moody's said the collapse of the talks has raised uncertainty about the government's determination to get the public finances into shape and clouds the country's economic growth prospects.

In addition, Moody's has put the National Bank of Hungary's bond rating under review for a possible downgrade.

[Associated Press]

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