Dec 1 (Reuters) - Standard & Poor's raised outlooks for
Bulgaria and Serbia to stable from negative on Dec 1, citing
Bulgaria's prudent fiscal policy, solid growth prospects and EU
membership, and Serbia's easing external pressures.
The global financial crisis hit eastern and central Europe
hard, causing many countries to have their credit ratings
downgraded due to exposure to foreign debt, recession in the
euro zone and banking problems.
But ratings positions in the region have begun to improve in
recent months, as economies stabilise.
Here is a list of long-term foreign currency ratings and
outlooks for countries in emerging Europe.
COUNTRY S&P MOODY'S FITCH
BULGARIA BBB Baa3 BBB-
Stable Stable Negative
S&P raised Bulgaria's outlook to stable from negative on Dec
1, citing the government's record on fiscal policy, strong
medium-term growth prospects and the country's EU membership.
Fitch on April 30 lowered Bulgaria's credit outlook to negative
from stable, saying the country's growing current
account deficit raised concerns about its long-term external
solvency.
CROATIA BBB Baa3 BBB-
Negative Stable Negative
Fitch on May 21 cut Croatia's ratings outlook to negative,
citing the Balkan state's large external debt burden and
vulnerability to external shocks.
CZECH REPUBLIC A A1 A+
Stable Stable Stable
Fitch on June 23 affirmed its A+ rating and stable outlook
on the Czech Republic, saying the economy was entering recession
from a relatively robust position because of moderate government
debt levels and the absence of economic and financial imbalances
seen in its peers.
ESTONIA A- A1 BBB+
Negative Negative Negative
S&P on Aug. 10 lowered Estonia's rating, saying that the
country needs a substantial economic adjustment to reduce its
dependence on external financing. Moody's on April 23 confirmed
Estonia's A1 rating and negative outlook.
GEORGIA B -- B+
Stable Stable
S&P affirmed Georgia's ratings at B on Sept. 28 with a
stable outlook, saying that the economic impact from the
country's brief but intense war has been offset by substantial
international aid.
HUNGARY BBB- Baa1 BBB
Stable Negative Negative
S&P on Oct. 2 raised its outlook on Hungary's ratings to
stable from negative, saying the country's fiscal consolidation
was limiting the deterioration in its public finances. The
ratings agency affirmed Hungary's BBB- rating, one notch above
junk.
ICELAND BBB- Baa3 BBB-
Negative Stable Negative
Moody's on Nov. 11 cut Iceland's rating to Baa3 from Baa1,
with a stable outlook, saying that Iceland was at the bottom of
the investment grade bracket because of its enduring fiscal,
financial and monetary challenges.
KAZAKHSTAN BBB- Baa2 BBB-
Stable Stable Negative
S&P on May 8 raised its outlook on Kazakhstan to stable from
negative, saying the government was likely to limit liabilities
arising from banking pressures.
LATVIA BB Baa3 BB+
Negative Negative Negative
Fitch on Oct. 6 affirmed Latvia's BB+ rating, saying the
rating remains under pressure due to its recession, fiscal
financing problems and rising public and external debt. In
February, S&P lowered Latvia's rating to "junk", making the
Baltic state the only European Union country aside from Romania
to be non-investment grade.
LITHUANIA BBB Baa1 BBB
Negative Negative Negative
Moody's on Sept. 28 cut Lithuania's ratings for the second
time this year, saying the deep economic recession will continue
to pressure government finances in the medium term.
MACEDONIA BB -- BB+
Stable Stable
S&P raised Macedonia's outlook to stable from negative on
Sept 21, citing a narrowing current account deficit.
MOLDOVA -- Caa1 B-
Stable Stable
Fitch on April 8 said Moldova's B- rating could be
threatened if political unrest proved prolonged and damaged the
economy. The ratings agency lowered the country's outlook to
stable from positive on Sept 15 2008.
MONTENEGRO BB+ Ba2 --
Negative Negative --
Moody's on Dec. 18 2008 lowered its outlook on Montenegro to
negative from stable, citing the reduced liquidity of its
banking system due to the global financial crisis, falling
aluminium prices and shrinking foreign direct investment.
POLAND A- A2 A-
Stable Stable Stable
S&P on Aug. 4 affirmed its rating on Poland, saying the
economy showed more resilience to the global economic
downturn than its regional peers.
ROMANIA BB+ Baa3 BB+
Negative Stable Negative
Moody's on Sept. 2 reaffirmed its Baa3 rating on Romania
while keeping its outlook on stable, saying that the country's
aid agreement with the International Monetary Fund and long-term
growth prospects were supportive.
RUSSIA BBB Baa1 BBB
Negative Stable Negative
S&P on Sept. 3 affirmed Russia's BBB rating, citing low debt
levels versus similarly-rated countries. Fitch on Aug. 4
affirmed Russia's rating at BBB but said a renewed deterioration
in global economic prospects, oil prices and risk appetite could
result in another downgrade.
SERBIA BB- -- BB-
Stable -- Negative
S&P raise its outlook for Serbia to stable from negative on
Dec 1, saying external pressures facing the country have eased.
TURKEY BB- Ba3 BB-
Stable Positive Stable
Fitch on Oct. 27 placed Turkey's ratings on rating watch
positive, saying its move reflected the country's relative
resilience in the face of the global financial crisis. The
ratings agency said its review of Turkey due by the end of the
year would likely lead to a ratings upgrade.
Moody's on Sept. 18 raised its outlook for Turkey to
positive from stable. A day earlier, S&P raised Turkey's outlook
to stable.
UKRAINE CCC+ B2 B-
Stable Negative Negative
Fitch on Nov. 12 cut Ukraine's sovereign rating, saying the
country faced greater financial risks from its ballooning budget
deficit because of the suspension of its IMF programme.
(For ANALYSIS-Emerging sovereign ratings at turning point,
double-click on [])
(Compiled by Sebastian Tong and Carolyn Cohn; editing by
Patrick Graham)
((sebastian.tong@thomsonreuters.com; +44 20 7542 8561; Reuters
Messaging: sebastian.tong.reuters.com@reuters.net))
