The ratings agency Fitch downgraded Hungary's national debt rating to below investment status on Friday, becoming the third agency to do so and putting the country's debt universally in "junk" territory. Moody's and Standard and Poor's have already labeled Hungary's debt below investment grade, so when Fitch reassessed the risk down one level to BB+, it pushed down the government bond yields because now nobody thinks Hungary is a good risk. According to Bloomberg Businessweek, the agency said it knocked down Hungary's debt because "there remained doubts whether Hungary will submit to conditions for aid from the International Monetary Fund and European Union." Hungary's government has clashed with European Union and International Monetary Fund officials over laws governing its banks, but it said on Friday it would work fast to make a deal. "The officials have made it clear the Hungarian government needs to change its stance on a law they have said curbs central bank independence," Reuters reported.

Want to add to this story? Let us know in comments or send an email to the author at amartin at theatlantic dot com. You can share ideas for stories on the Open Wire.
Adam Martin