LONDON, Oct 2 (Reuters) - Standard & Poor's (S&P) on Friday
raised its ratings outlook on Hungary to 'stable' from
'negative', saying the country's fiscal consolidation has
limited the deterioration in its public finances.
The global financial crisis hit eastern and central Europe
hard, causing many 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 weeks.
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-
Negative Stable Negative
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. Fitch rates Bulgaria's long-term foreign-currency debt
at BBB-, the lowest investment grade level.
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- Baa1 BBB-
Negative Negative Negative
Moody's on Dec. 4 2008 cut Iceland's rating by one notch
with a negative outlook, saying the island's banking crisis and
currency collapse had significantly damaged the government's
financial strength.
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
S&P on Aug. 10 cut Latvia's long-term rating to BB, saying
the country faced growing political and economic challenges as a
result of contracting incomes and pressures on public finances.
In February, S&P cut 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-
Negative -- Negative
S&P on July 31 affirmed its ratings on Serbia at BB- with a
negative outlook, citing the country's continued dependence on
external funding to support economic growth and limited economic
policy flexibility.
TURKEY BB- Ba3 BB-
Stable Positive Stable
Moody's on Sept. 18 raised its outlook for Turkey to
positive from stable, saying the Turkish economy was better
prepared to face the credit crunch than it seemed before.
A day earlier, S&P raised Turkey's outlook to stable, saying
the country's new fiscal plan eased concerns about the its
finances.
Moody's said on May 27 that Turkey's rating would probably
not change whether the country signs a loan accord with the
IMF or not.
UKRAINE CCC+ B2 B
Positive Negative Negative
Fitch on Sept. 8 warned that a collapse of Ukraine's IMF
programme would hurt the country's rating, which is already low
due to concerns about its finances.
(For ANALYSIS-Emerging sovereign ratings at turning point,
double-click on [])
(Compiled by Sebastian Tong and Carolyn Cohn; Editing by
Victoria Main)
