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Hungary 'Junked' By Moody's

By: capt_nemo in WRGO | Recommend this post (0)
Fri, 25 Nov 11 7:34 AM | 35 view(s)
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Submitted by Tyler Durden on 11/24/2011 - 17:41 Hungary Italy ratings Sovereign Debt Volatility

Citing uncertainty over the country's ability to meet 'austerity' targets and its rising susceptibility to external shocks - given its heavy reliance on external investors - Moody's just downgraded Hungary to Junk Ba1 (with a negative outlook). With its 10Y yield currently at 9%, only 190bps wider than Italy, we thought it somewhat ironic that Hungary's average 10Y yield from SEP09 to SEP11 was 7.2% - almost exactly where Italy finds itself trading currently.

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