LONDON, March 31 (Reuters) - Moody's on Wednesday raised its
credit outlook on Estonia, Latvia and Lithuania to stable from
negative, saying economic prospects in the three Baltic states
have improved.
Rival ratings agency Fitch earlier this week put Estonia;s
rating on ratings watch for a possible upgrade.
On Wednesday, Standard & Poor's (S&P) cut its long-term
rating on Montenegro to BB, warning that the country's public
finances were pressured by its sharp economic contraction and
deteriorating bank loan books.
Sovereign credit ratings in eastern and central Europe have
largely 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.
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+
Stable Stable Positive
Moody's on March 31 raised its outlook on Estonia's rating
to stable from negative, citing the likelihood of euro adoption
in January 2011.
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+
Stable Stable Negative
Moody's on March 31 raised its outlook on Latvia's ratings
to stable from negative, saying the country had seen the worst
of the recession.
LITHUANIA BBB Baa1 BBB
Stable Stable Stable
Moody's on March 31 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
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 --
S&P on March 31 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 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+
Stable Stable Stable
Standard & Poor's raised its outlook on Romania to stable
from negative on March 9, citing the government's success so far
in undertaking fiscal consolidation.
Fitch raised Romania's ratings outlook to stable from
negative on Feb 2, 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 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+
Positive Stable Stable
S&P on Feb. 19 raised Turkey's rating to BB, two notches
below investment grade, praising the country's fiscal
management.
On Jan. 8, Moody's upgraded Turkey to Ba2 from Ba3, 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 B- B2 B-
Positive Negative Stable
Fitch on March 17 lifted its credit outlook on Ukraine and
affirmed the country's rating, saying the risks of prolonged
policy and financial instability had decreased following the
election and formation of a governing coalition.
On March 11, S&P raised Ukraine's sovereign rating on March
11, saying the new government paved the way for the resumption
of IMF funding suspended since November. It also lifted its
outlook on Ukraine to positive from stable.
(Compiled by Sebastian Tong and Carolyn Cohn; editing by Ron
Askew)
