LONDON, Dec 21 (Reuters) - Standard & Poor's (S&P) on Dec 21
raised its ratings on Russia to stable from negative, saying it
expected the country's budgetary and balance sheet performance
to improve gradually.
Earlier this month, Turkey got a double-notch upgrade from
Fitch, with the ratings agency citing the country's resilience
to the global crisis and the easing of earlier restraints such
as inflation.
The global financial crisis hit eastern and central Europe
hard, causing many credit rating downgrades 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 Stable
Fitch on Dec 16 raised Kazakhstan's rating outlook to stable
from negative, citing higher oil prices and capital inflows.
LATVIA BB Baa3 BB+
Negative Negative Negative
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 last December 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
Stable Stable Negative
S&P on Dec. 21 revised Russia's credit outlook to stable
from negative, saying its expecting the country's budgetary and
balance sheet performance will gradually improve.
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 upgraded Turkey to BB+ from BB- on Dec 3, citing its
resilience to the global crisis and the easing of earlier
restraints such as inflation.
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 sovereigns may climb credit scale in
2010", see [])
(For "ANALYSIS-Ratings agencies: the new power in Europe
politics?", see [])
(Compiled by Sebastian Tong and Carolyn Cohn; )
