Hungary's economy ministry says a downgrade to junk status of the country's credit rating by Moody's has no real basis and is part of a series of "financial attacks" against the country.
The ministry said Friday that the downgrade is unjustified because despite the unfavorable external circumstances, Hungary's economic performance has improved over the past 18 months.
The Moody's credit rating agency cut its rating on Hungary's government bonds by one notch, from Baa3 to Ba1, keeping its negative outlook on expectation.
There were widespread expectations for a downgrade, so initial market reaction to the decision was restrained.
Still, yields on Hungarian debt are rising and the national currency, the forint , weakened slightly against the euro.