March 31 (Reuters) - Moody's raised Montenegro's rating
outlook to stable from negative on March 30, saying the outlook
change reflected a reversal of fiscal deterioration, signs of
gradual recovery, and stabilisation of the banking sector.
Moody's cut Belarus' rating one notch to B2 from B1 on March
29, citing concerns over near-term external financing gaps.
Standard & Poor's raised Georgia's ratings outlook to
positive on March 29, saying there was a better than
one-in-three likelihood of an upgrade if external performance
continues to improve.
Sovereign credit ratings in eastern and central Europe are
largely improving after foreign debt and banking problems
triggered downgrades during the global financial crisis.
Here is a list of long-term foreign currency ratings and
outlooks for countries in emerging Europe:
COUNTRY S&P MOODY'S FITCH
BELARUS B B2 -
Negative - -
Moody's cut Belarus' rating one notch to B2 from B1 on March
29, 2011, citing concerns over near-term external financing
gaps.
S&P on March 15, 2011 lowered Belarus' rating to B from B+
and affirmed its negative outlook, citing the country's
vulnerability to negative external financing trends, given the
deterioration in the country's usable reserves.
BULGARIA BBB Baa3 BBB-
Stable Positive Negative
Moody's said on April 21 2010 that a ratings upgrade for
Bulgaria was still possible in the next 12-18 months despite a
larger than expected 2009 fiscal gap. The ratings agency raised
Bulgaria's outlook to positive from stable on Jan 21 2010,
citing the government's tight monetary policy and relatively low
budget deficit.
CROATIA BBB- Baa3 BBB-
Negative Stable Negative
S&P on Dec 21 2010 cut Croatia's credit rating to BBB- with
a negative outlook, saying the country's fiscal position had
deteriorated while its external financing flexibility remained
weak. The ratings agency warned of the likelihood for another
downgrade over the next two years.
CZECH REPUBLIC A A1 A+
Positive Stable Positive
Standard & Poor's on August 10, 2010 revised its outlook on
the Czech Republic's A long-term foreign currency rating to
positive from stable, and said upgrades are likely if the new
coalition government manages to implement spending cuts.
GEORGIA B -- B+
Positive Positive
S&P raised Georgia's ratings outlook to positive on March
29, 2011, saying there was a better than one-in-three likelihood
of an upgrade if external performance continued to improve.
Fitch revised Georgia's outlook to positive and affirmed its
ratings at B+ on March 3, reflecting its strong economic
recovery and some easing of political risk.
HUNGARY BBB- Baa3 BBB-
Negative Negative Negative
Fitch on Dec 23 2010 cut Hungary's rating by a notch to
BBB-, warning that the lack of a coherent medium-term fiscal
strategy put the country at risk of further downgrades.
Hungary is on the brink of 'junk' credit status with all
three major ratings agencies.
Moody's on Dec 6 cut Hungary's rating by two notches to
Baa3, warning of further downgrades if the government failed to
put public finances on a sustainable footing.
S&P on Nov. 3 affirmed Hungary's BBB- credit rating but kept
its negative outlook on the country, warning that the deficit
would rise again in 2013 after special taxes levied on certain
sectors expire at the end of 2012.
ICELAND BBB- Baa3 BB+
Negative Negative Negative
Moody's cut Iceland's outlook to negative from stable on
July 29, 2010, due to a Supreme Court ruling on the illegality
of foreign exchange-linked loans and failure to resolve the
dispute with Britain and the Netherlands over deposits frozen
when Icesave bank collapsed in 2008.
KAZAKHSTAN BBB Baa2 BBB-
Stable Stable Stable
S&P on Dec 23 2010 raised its credit rating for Kazakhstan,
declaring the country's banking crisis over and noting that
rising oil output and foreign investment should underpin the
central Asian republic's economic growth.
LATVIA BB+ Baa3 BBB-
Stable Stable Positive
Fitch upgraded Latvia's ratings to BBB- from BB+ on March
15, 2011, saying Latvia's good progress in its recovery from a
severe financial crisis and improving growth outlook warranted a
return to investment grade.
S&P on Dec 7, 2010 raised its ratings on Latvia to BB+ with
a stable outlook, saying its economy was rebalancing quickly
with public debt remaining at a moderate level.
LITHUANIA BBB Baa1 BBB
Stable Stable Stable
Moody's on March 31, 2010, lifted Lithuania's ratings
outlook to stable from negative to reflect a brightening
economic picture and easing financial stress in the Baltic
economy.
MACEDONIA BB -- BB+
Stable Stable
MOLDOVA -- Caa1 B-
Stable Stable
Fitch in April 2009 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 Stable --
Moody's raised Montenegro's rating outlook to stable from
negative on March 30, saying the outlook change reflected a
reversal of fiscal deterioration, signs of gradual recovery, and
stabilisation of the banking sector.
S&P on March 31 2010 cut Montenegro's rating to BB from BB+
and lowered its credit outlook to negative, warning that the
country was at risk from severe economic contraction and
worsening bank loans quality.
POLAND A- A2 A-
Stable Stable Stable
S&P on July 16 2010 affirmed its rating on Poland, saying
the economy continued to stay competitive and become
increasingly diversified. The agency said these ratings were
tempered by Poland's rising levels of government debt.
ROMANIA BB+ Baa3 BB+
Stable Stable Stable
S&P's raised its outlook on Romania to stable from negative
on March 9, 2010, citing the government's success so far in
fiscal consolidation.
Fitch raised Romania's ratings outlook to stable from
negative on Feb 2, 2010, citing a narrowing of the country's
external shortfall and a resumption in aid disbursements from
the International Monetary Fund.
RUSSIA BBB Baa1 BBB
Stable Stable Positive
Fitch on Sept 8 2010 raised Russia's credit outlook to
positive from stable, saying sizeable private sector debt
repayments and the stabilisation in the banking sector had
reduced the country's financial vulnerabilities.
SERBIA BB -- BB-
Stable -- Stable
S&P raised Serbia's rating to BB from BB- on March 16, 2011,
citing markedly improving economic policy implementation.
Fitch on Nov 11 2010 raised its outlook on Serbia to stable
from negative, citing the reduced risk of an external financing
crisis and the resumption of economic growth.
TURKEY BB Ba2 BB+
Positive Positive Positive
Fitch on Nov 24 2010 lifted its outlook on Turkey's rating
and said a ratings upgrade was possible if Ankara continued to
reduce its government debt-to-GDP ratio.
Moody's on Oct. 5 raised Turkey's rating outlook to positive
from stable, saying the country's economic and fiscal resilience
had improved.
UKRAINE B+ B2 B
Stable Stable Stable
Moody's on Oct 11 2010 raised Ukraine's credit rating
outlook to stable from negative, citing improved external
liquidity following a new IMF agreement and recent Eurobond
launch.
(Compiled by Carolyn Cohn, Caroline Copley, Sebastian Tong)
