Junk-Rated Hungary Trades as Rising Star in Default Swaps Market
- Ratings reviews start next week for central European nation
- Upgrade would reverse 2011 decision to strip investment-grade
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Derivatives traders have already promoted Hungary out of junk.
Less than two weeks before global ratings companies begin reassessing the eastern European nation’s debt, credit-default swaps imply an investment-class ranking of Baa3 at Moody’s Investors Service. The country has been rated Ba1, one level below the high-grade status, since November 2011.