S&P revises Hungary to positive

S&P said it revised the outlook on Hungary to positive from stable and affirmed its BBB-/A-3 long- and short-term foreign and local currency sovereign credit ratings.

The agency also revised the outlook on the National Bank of Hungary to positive from stable and affirmed its BBB- long-term issuer credit rating.

S&P said the outlook revision reflects its expectation that Hungary's improving economic and external metrics might support ongoing improvements in the financial sector and thus strengthen the monetary transmission channel.

After five years of creditless economic recovery, the agency said it expects loan growth to resume and nonperforming loans (domestic loans more than 90 days overdue as defined by S&P) to stabilize at about 10% – much lower compared to historical peak levels.

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