Moody's confirmed Budapest's investment recommendation rating, MTI reported. The outlook for the Hungarian capital's rating remains stable.
Meanwhile, the international credit rating agency affirmed Budapest's Primary Debtor Quality Assessment (BCA) at the previous 'Baa3' level.
In justifying the decision announced on Friday evening in London, Moody's emphasizes that the affirmation of the BCA “Baa3” rating, the “Baa3” issuer rating and the stable outlook reflect Budapest's significant role in the Hungarian economy, the city's declining and manageable debt level, and the fact that budget management is also adequate. In a challenging operating environment.
Moody's also confirms that Budapest, as the country's most developed city, produces 37% of Hungary's GDP, and that the city's strong economic performance is better than the national average.
Due to the performance of Budapest's economy based on high value-added services, the value of its GDP per capita is more than 200% of the national average.
Moody's analysis also indicates that in the past few years, Budapest has shown good debt sustainability, with the debt balance falling to 42 percent of operating income in 2023, i.e. to a manageable level from the 56 percent recorded in 2022. According to According to the credit rating agency's forecast, this ratio will decline to around 35% of operating income in 2024 as a result of the well-distributed maturity profile.
The credit rating agency confirms that the stable outlook for Budapest's rating reflects the expected positive economic outlook for the country and that Budapest is able to keep its debt level under control.
