Hungary Downgrade Threat Repeated by S&P, Moody’s

Hungary’s commitment to cut the budget deficit hasn’t removed the threat to its investment-grade debt rating because the government needs to clarify its economic policies, Standard & Poor’s said. Moody’s Investor Service, also mulling a downgrade, said fiscal plans will steer its decision.

Prime Minister Viktor Orban’s government last week pledged to reduce the 2011 shortfall to below the European Union limit of 3 percent of gross domestic product, two months after falling out with international lenders over the same targets.