Budapest 2024 have claimed their bid for the Olympic and Paralympic Games has been given a boost after ratings agency Moody’s upgraded Hungary’s credit rating.
The latest assessment from Moody’s saw them upgrade "Hungary's long term issuer and senior unsecured Government bond ratings by one notch to Baa3 from Ba1", with the assertion that the outlook appears "stable".
It is claimed the decision to upgrade long-term Government bonds into their second highest investment tier comes as a result of "stable, growth-friendly policy environment".
The report claimed the Government debt burden will continue to gradually decline, while structural economic improvements will help sustain positive growth rates of between two to 2.5 per cent in the coming years.
A "significant reduction in external vulnerability" was also cited by Moody’s, with the claim this improves the resilience of Hungary’s credit rating.
The boost from Moody’s came after Standard and Poor’s and Fitch also upgraded their status for Hungary.
Standard and Poor's raised their rating on the National Bank of Hungary to "Investment Grade", improving both the long and short-term credit ratings, while Fitch followed suit by upgrading the bank with a "stable" outlook.
Budapest 2024 have claimed the ratings indicate they will have positive economic conditions during the seven-year build up to the Games, should they be awarded the event by the International Olympic Committee (IOC).
They have also asserted that the country has been "consistently outstripping Eurozone growth" since 2004.
"The bedrock of a resilient and stable economy, now confirmed by the world’s most influential credit rating organisations, means that we can ensure that the Budapest Games is financially sustainable in line with the IOC’s Agenda 2020," said Balázs Fürjes, Budapest 2024 chairman.
"We can make this pledge because we have a long-term vision for the Games that is integrated into robust and well-established national economic development.
"Our business ecosystem offers a low cost base, with all the advantages of relatively affordable production costs alongside all the security of a low-risk environment.
"This confirms to the world what we knew - that Hungary has the imagination and also the resources, the financial planning and the management experience and expertise to deliver on our bid’s commitment to plan and host an outstanding yet affordable Games."
While citing Hungary’s economic strength, including stating they have not had a current account deficit since the depths of the worldwide recession in 2009, Budapest 2024 believe the Games could aid their economy further by providing as many as 100,000 new jobs.
The boost in credit ratings comes as Budapest 2024 prepare to for their bid presentation at next week's Association of National Olympic Committees eneral Assembly in Doha.
It marks a first opportunity for each to formally showcase their respective bids, with Paris 2024 and Los Angeles 2024 also set to present.
It is expected that around half of the 98 IOC member voters should be in Doha for the presentation during the General Assembly, taking place at the Sheraton Hotel on Tuesday and Wednesday (November 15 to 16).
The IOC is due to elect its 2024 host on September 13 next year, in Lima in Peru.