...do some countries act as pilot fish time after time???
Hungary Looks Set for Downgrade, Possible Default as Recession Looms
Hungary looks the most probable eastern European Union nation to have
its credit rating downgraded and to default on its sovereign debt as
the prospect of a recession looms.
The outlook for the economy has deteriorated because of deleveraging
by the western parent companies of local banks, a worsening external
trade outlook and tighter monetary policy.
Hungary formally approached the International Monetary Fund for
financial support on Nov. 27, the second time it’s held out the
begging bowl in three years, after the forint fell to a record low
against the euro and Moody’s downgraded the country’s debt to junk
status. S&P and Fitch may follow suit if negotiations with the IMF
Hungary’s credit-default swap spreads suggest investors see a
sovereign default as increasingly likely. Five-year CDS for Hungary
have doubled since August to 540 basis points. The yield on the
10-year government bond rose to 8.54 percent yesterday, 33 basis
points above that of bailed-out Ireland.