Moody's lowers city of Budapest's rating to junk

Moody's cut the city's credit rating from Baa3 to Ba1, a category with high risk often described as speculative or junk grade. The move comes as Hungary is expected to hold parliamentary elections in spring, where Orban's 16-year-rule will be put to a test as the opposition TISZA party has been leading in independent polls. The downgrade follows repeated warnings by Budapest's environmentalist mayor Gergely Karacsony -- an outspoken critic or Orban -- who said the city of 1.6 million faces the threat of insolvency.