Source: US News & World Report
“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. … ‘Ongoing legal disputes over the tax amount, which exceeds the funding received from the central government, add system instability and jeopardize the budgeting process and cash balances,’ Moody’s said, adding the ratings also reflected the partial freezing of European Union funds to Hungary.” (12/30/25)