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Hungary govt defiant after Moody's downgrade

BUDAPEST, Dec 6 (Reuters) - Hungary’s credit rating was cut by Moody’s because government policy has hurt the short-term interests of international capital and the cut will likely eventually be reversed, the prime minister’s office said on Monday. “What happens was precisely predicted by the prime minister half a year ago,” Peter Szijjarto, Viktor Orban’s spokesman, said in an emailed statement.

“The downgrade happened because of measures that hurt the interests of international capital in the short term,” Szijjarto said. “Short-term downgrades will turn into upgrades in the long run.” Moody’s cut Hungary’s sovereign debt rating to Baa3, its lowest investment grade, on Monday, citing fiscal uncertainties and external vulnerabilities. [ID:nLDE6B50BT]

Reporting by Marton Dunai; editing by Patrick Graham