The latest downgrade may have serious consequences for the market

Hungary's sovereign debt is just a step away from falling to junk status, after the latest downgrade by Standard & Poor's, American business magazine Forbes pointed out on Tuesday.

S&P lowered its rating to "BBB
minus" with a negative outlook on Monday, in a move that
analysts warned could have serious consequences for the market.

„Hungary's economy, which has been
gradually preparing to join the euro zone, had attracted investment
from funds keen to play on the transformation, but most of these
funds can't invest in sub-investment grade products so a further
knock to Hungary's ratings would force them out of the market”,
said Michael Ganske, emerging market strategist at Commerzbank in
Frankfurt.