# S&P Global Ratings' downgrade warnings for the credit ratings of Hungary and Romania reflect the fiscal risk facing the two emerging European countries.

*business · news · 2026-05-06 · MarketScreener*

## Key points

- S&P Global Ratings issued downgrade warnings for Hungary and Romania due to increased fiscal risks.
- Energy price shocks and related support measures are worsening already stretched fiscal positions in both countries.
- Slovakia's recent credit rating downgrade is cited as evidence of regional fiscal vulnerabilities.
- Romania's government collapse may hinder its ability to implement required fiscal deficit reductions.

LONDON, May 6 (Reuters) - S&P Global Ratings' downgrade warnings for the credit ratings of Hungary and Romania reflect the fiscal risk facing the two emerging European countries, the ratings agency told Reuters on Wednesday. o Fiscal risks have been the key credit risks for CEE sovereigns for a few years, said Karen Vartapetov, Lead Analyst for CEE & CIS Sovereign Ratings at S&P Global Ratings. o The stagflationary impact of the global energy price shock together with energy-related support measures will likely add pressure to fiscal positions, already stretched by high defence spending and generous social transfers, he added. o "Our negative outlooks on Hungary and Romania and the recent downgrade of Slovakia's credit ratings clearly reflect these risks," Vartapetov said. o Speaking about Romania, Vartapetov said the collapse of the coalition government could complicate budget discussions for 2027. o "This is important as Romania's commitment to cut fiscal deficits implies additional consolidation measures in the coming years." o Romanian lawmakers toppled Prime Minister Ilie Bolojan's pro-EU government in a no-confidence vote on Tuesday. (Reporting by Libby George and Gergely Szakacs, editing by Karin Strohecker) By Libby George and Gergely Szakacs

**Companies:** S&P Global Ratings
**Countries:** Hungary, Romania, Slovakia

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