Rating outlook improvements in Slovenia and Hungary

There was quite a lot happening regarding rating decisions last Friday. First, Fitch affirmed Hungary's rating at 'BBB' and raised the rating outlook from negative to stable. The rating agency mentioned a significant reduction in macroeconomic imbalances, including a sharp decline in inflation, and the return to a current account surplus. According to Fitch, uncertainty remains about the government's policy mix in the run-up to the 2026 general election. Further, political considerations will continue to limit Hungary's full access to EU funds. In Slovenia, we also saw a change in the outlook. Namely, S&P confirmed Slovenia's rating at 'AA-', while improving the outlook from stable to positive. The rationale behind such a decision came as no surprise, where resilient economic growth and stable public finances were highlighted as the main drivers behind the outlook upgrade. Finally, Fitch confirmed Slovakia's rating at A- with a stable outlook as a stable and credible macroeconomic framework persists amid fiscal risks. There is one evaluation left this year. On Friday, after markets close, Moody's will release its rating and outlook decision for Slovakia. Given the negative outlook, a downgrade scenario remains a possibility.