"Hungary's ratings balance strong structural indicators compared with 'BBB' peers against higher public and net external debt, and risks from policy unpredictability and pro-cyclical fiscal policies," the ratings agency said.
Hungary's foreign currency debt has significantly decreased in recent years, as the government shifted debt financing towards domestic issuance. This, coupled with a current account surplus has reduced the economy's vulnerability.
Fitch also reiterated the Central European nation's outlook at positive citing improving trend on net external and government debt.