Moody's cuts Budapest's rating to junk due to row with national government


Hungarian Prime Minister Viktor Orban speaks during an economic forum in Budapest, Hungary, March 8, 2025. REUTERS/Bernadett Szabo

BUDAPEST, Dec 30 (Reuters) - Ratings agency ‌Moody's has downgraded Budapest's credit rating to Ba1 from Baa3 and placed ‌it on review for a further reduction, citing its weak liquidity and ‌a financial dispute with Viktor Orban's national government.

The downgrade comes at a delicate time for Budapest, which is run by the liberal mayor Gergely Karacsony, as nationalist Prime Minister Orban will likely face ‍parliamentary elections in April. The centre-right opposition Tisza party ‍is leading most polls.

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