Hudson: svn authentication cancelled

The Hudson was building all projects without any issues since it was installed. All of a sudden yesterday my inbox was filled with failure reports, Hudson was not able to build any of the projects. Stack trace":

ERROR: svn: authentication cancelled
org.tmatesoft.svn.core.SVNCancelException: svn: authentication cancelled
    at org.tmatesoft.svn.core.internal.wc.SVNErrorManager.cancel(SVNErrorManager.java:37)
    at org.tmatesoft.svn.core.internal.wc.SVNErrorManager.cancel(SVNErrorManager.java:32)
    at org.tmatesoft.svn.core.internal.wc.DefaultSVNAuthenticationManager.getNextAuthentication(DefaultSVNAuthenticationManager.java:200)
    at hudson.scm.FilterSVNAuthenticationManager.getNextAuthentication(FilterSVNAuthenticationManager.java:42)
    at org.tmatesoft.svn.core.internal.io.dav.http.HTTPConnection.request(HTTPConnection.java:537)
    at org.tmatesoft.svn.core.internal.io.dav.http.HTTPConnection.request(HTTPConnection.java:273)
    at org.tmatesoft.svn.core.internal.io.dav.http.HTTPConnection.request(HTTPConnection.java:261)
    at org.tmatesoft.svn.core.internal.io.dav.DAVConnection.exchangeCapabilities(DAVConnection.java:516)
    at org.tmatesoft.svn.core.internal.io.dav.DAVConnection.open(DAVConnection.java:98)
    at org.tmatesoft.svn.core.internal.io.dav.DAVRepository.openConnection(DAVRepository.java:1001)
    at org.tmatesoft.svn.core.internal.io.dav.DAVRepository.testConnection(DAVRepository.java:97)
    at hudson.scm.SubversionSCM$DescriptorImpl.checkRepositoryPath(SubversionSCM.java:1686)
    at hudson.scm.SubversionSCM.repositoryLocationsExist(SubversionSCM.java:1826)
    at hudson.scm.SubversionSCM.checkout(SubversionSCM.java:506)
    at hudson.scm.SubversionSCM.checkout(SubversionSCM.java:469)
    at hudson.model.AbstractProject.checkout(AbstractProject.java:898)
    at hudson.model.AbstractBuild$AbstractRunner.checkout(AbstractBuild.java:391)
    at hudson.model.AbstractBuild$AbstractRunner.run(AbstractBuild.java:340)
    at hudson.model.Run.run(Run.java:1090)
    at hudson.maven.MavenModuleSetBuild.run(MavenModuleSetBuild.java:301)
    at hudson.model.ResourceController.execute(ResourceController.java:93)
    at hudson.model.Executor.run(Executor.java:122)
Finished: FAILURE

This usually results if the authentication has failed. Verify hudson SVN credentials.