Hungarians facing ratings downgrade

Ratings agencies may downgrade Hungary's sovereign debt after it snubbed the International Monetary Fund and rejected austerity measures in favour of a pro-growth policy to woo voters ahead of municipal elections in October.

Moody's placed Hungary's government bond ratings on review, citing increased fiscal risks, after the IMF and EU suspended talks about their €20bn financing deal with Budapest. Its rival S&P also revised its outlook on Hungary from "stable" to "negative".

Prime Minister Viktor Orban, who took power in April, has vowed to end belt-tightening planned by the previous Socialist government.