Moody's has downgraded Budapest's credit rating to Ba1, citing weak liquidity and financial disputes of the Orban government.

The financial evaluation agency Moody's has downgraded Budapest's credit rating from Baa3 to Ba1, considering it not recommended for investments. The decision was influenced by Hungary's weak capital liquidity and financial conflicts with the government led by Viktor Orban. Moody's emphasized that there are concerns regarding Budapest's ability to repay its financial obligations by the end of 2025. Mayor Gergely Karácsony criticized the downgrade, attributing it to the government's fiscal policy. The agency also mentioned the negative impact of a significantly increased solidarity tax and the partial freezing of European funds for Hungary.