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.
Anglo Irish Bank Corp. ’s bailout may cost Ireland’s government more than 35 billion euros ($47 billion), Standard & Poor’s credit analyst Trevor Cullinan said, exceeding the rating company’s previous estimate.
Russia sees a high probability that neighboring Ukraine will default. Standard & Poor’s says that outcome is likely. Even Ukraine’s acting president calls the country’s plight a “pre-default situation.”
Ukraine’s opposition set up a clash with the ruling party over a proposed cabinet shakeup, bolstering demands for the ouster of Prime Minister Mykola Azarov after the biggest street protests in almost a decade.
France and Austria lost their top credit ratings in a string of downgrades that left Germany with the euro area’s only stable AAA grade as Standard & Poor’s warned that crisis-fighting efforts are still falling short.
Polish Prime Minister Donald Tusk won “breathing space” with a four-year fiscal plan that uses as much as 36 billion zloty ($11.9 billion) of asset sales and cash management savings to defer tax increases and spending cuts.