LONDON, Jan 21 (Reuters) - Moody's upgraded Bulgaria's
rating outlook to positive from stable, citing the country's
adoption of a tight fiscal policy.
Sovereign credit ratings in eastern and central Europe have
begun to improve after suffering downgrades during the global
financial crisis due to the exposure of these economies to
to foreign debt and banking problems.
But some economies still look vulnerable.
Fitch cut Iceland's ratings to junk status on Jan 5 after
Iceland's president forced a referendum rather than sign a bill
seen as key to restoring the nation's access to foreign capital.
Standard & Poor's put Iceland's ratings on creditwatch
negative on the same day, citing the same issue.
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 Positive Negative
Moody's raised Bulgaria's outlook to positive from stable on
Jan 21, citing the government's tight monetary policy and
relatively low budget deficit.
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 BB+
CW negative Stable Negative
Fitch cut Iceland's rating to BB-plus -- junk status -- on
Jan 5 after President Olafur Grimsson forced a referendum rather
than sign a bill seen as key to restoring the nation's access to
foreign capital.
S&P placed Iceland's ratings on creditwatch negative on Jan
5, citing the same issue.
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 Feb 2009, 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 lowered its outlook on Montenegro to negative from
stable in Dec 2008, 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 raised its outlook for Serbia to stable from negative on
Dec 1, saying external pressures facing the country have eased.
TURKEY BB- Ba2 BB+
Stable Stable Stable
Moody's upgraded Turkey to Ba2 from Ba3 on Jan 8, citing
growing confidence in Turkey's financial shock absorption
capacity.
Fitch upgraded Turkey to BB+ from BB- on Dec 3, citing the
country's resilience to the global crisis and the easing of
earlier restraints such as inflation.
UKRAINE CCC+ B2 B-
Stable Negative Negative
Fitch cut Ukraine's sovereign rating on Nov 12, saying the
country faced greater financial risks from its ballooning budget
deficit because of the suspension of its IMF programme.
(For "ANALYSIS--Domestic politics imperil IMF deals in
Europe", see [])
(For "ANALYSIS-Emerging sovereigns may climb credit scale in
2010", see [])
(Compiled by Carolyn Cohn and Sebastian Tong; Editing by
andy Bruce) ((sebastian.tong@thomsonreuters.com; +44 20 7542
8561; Reuters Messaging:
sebastian.tong.reuters.com@reuters.net))
