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Moody's, a U.S. based for-profit ratings agency, that many economists partly blame for America's recent disasterous financial troubles, has cut Hungary's sovereign credit rating by two levels to Baa3, just above junk bond status.
Moody's believes that populist PM Viktor Orban's (pictured) policy of plugging budget holes with “temporary measures” won't work.
Hungary reportedly has the eastern EU’s highest debt, about 79 percent of GDP this year.
“The government is relying only on short-term measures and doing everything to avoid losing popularity,” said hedge fund manager Daniel Bebesy. “We don’t see any signs of structural changes, only the patching of budget holes by spending the private pension fund savings.”
