LONDON, May 19 (Reuters) - Moody's last week downgraded
Ukraine's sovereign ratings to B2 from B1 and placed the country
on a "negative" outlook, citing a deteriorating macroeconomic
situation and uncertainty over capital controls.
Here is a list of long-term foreign currency ratings and
outlooks for countries in emerging Europe, until recently seen
as one of the safest regions across emerging markets but now
exposed to credit worries, recession in the euro zone and
increased banking problems.
COUNTRY S&P MOODY's FITCH
BULGARIA BBB Baa3 BBB-
Negative Stable Stable
Fitch cut Bulgaria's foreign currency rating on Nov. 10 to
BBB-, the lowest investment-grade level, saying a marked decline
in external financing flows has heightened its recession risks.
CROATIA BBB Baa3 BBB-
Negative Stable Stable
S&P cut its rating on Croatia on March 16, warning of a
deteriorating liquidity position and slow policy response,
coupled with a sizeable current account deficit.
CZECH REPUBLIC A A1 A+
Stable Stable Stable
Moody's on Dec. 8 revised its outlook for the Czech Republic
to stable from positive, noting that the country was unlikely to
have a ratings upgrade in the next 12 to 18 months because it
was facing slowing economic growth.
ESTONIA A A1 BBB+
Negative Negative Negative
Fitch on Apr. 8 said Estonia's economic downturn was turning
out to be more severe than expected. S&P put Estonia on credit
watch negative on Feb. 24 while Moody's on the same day placed
the country on review for a possible downgrade.
GEORGIA B -- B+
Stable Negative
Fitch on Apr. 7 placed Georgia's long-term foreign and local
currency issuer default ratings on negative watch, saying rising
domestic political tensions were making it more difficult for
authorities there to help the economy recover from the twin
shocks of the 2008 war with Russia and the global financial
crisis.
HUNGARY BBB- Baa1 BBB
Negative Negative Negative
Moody's on March 31 cut Hungary's rating to Baa1, citing its
weak financial position. A day earlier, S&P cut Hungary's rating
to BBB-, one notch above junk.
ICELAND BBB- Baa1 BBB-
Negative Negative Negative
Moody's on Dec. 4 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
Moody's on Apr. 23 cut Latvia's rating by two notches,
saying the economic downturn in the country was more severe than
previously anticipated. Fitch on Apr. 8 cut Latvia's rating to
"junk" status, warning of risks in policy implementation as the
government grappled with popular discontent. S&P also cut
Latvia's rating on Feb. 24 to "junk", making the Baltic state
the only European Union country aside from Romania to be
non-investment grade.
LITHUANIA BBB A3 BBB
Negative Negative Negative
Moody's on Apr. 23 downgraded Lithuania's sovereign rating,
saying the deteriorating economy would pressure government
liquidity. Fitch on Apr. 8 lowered Lithuania's rating, warning
that government austerity measures could be threatened by a
public backlash. S&P cut the country's rating on March 24.
MOLDOVA -- Caa1 B-
Stable Stable
Fitch on Apr. 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 Sep. 15.
MONTENEGRO BB+ Ba2 --
Negative Negative --
Moody's on Dec. 18 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
Standard & Poor's cut its outlook on Poland to stable from
positive on Oct. 27, citing the deterioration in the
international markets and tightening credit conditions.
ROMANIA BB+ Baa3 BB+
Negative Stable Negative
Romania was the only European Union member with a
non-investment grade rating until Latvia's downgrade. On Nov. 10
Fitch followed Standard and Poor's in cutting it to "junk" and
gave the country a negative outlook, citing the risk of a severe
financial and economic crisis.
RUSSIA BBB Baa1 BBB
Negative Stable Negative
Fitch on Feb. 4 downgraded Russia to BBB and said further
cuts were possible due to low commodity prices, high capital
outflows, melting reserves and mounting corporate debt problems
-- leaving Russia two notches away from being "junk" grade.
SERBIA BB- -- BB-
Negative -- Negative
Fitch on Dec. 23 revised its outlook for Serbia to negative
from stable, saying the country faced heightened credit risks
due to its high external debt as a result of the financial
crisis. In July, S&P said the arrest of war crimes suspect
Radovan Karadzic augured well for Serbia's path to EU accession
but it retained its negative outlook on the country citing
economic overheating risks.
TURKEY BB- Ba3 BB-
Negative Stable Stable
Fitch on Jan. 14 affirmed Turkey's BB- long-term foreign
currency ratings, saying the country has proved resilient in the
fact of the global credit crunch. S&P on Nov. 13 revised its
outlook on Turkey to negative from stable but affirmed the
country's BB-/B foreign currency rating. Moody's said on Dec. 2
that Turkey would retain its Ba3 rating although the momentum
was for the rating to move up in the longer term.
UKRAINE CCC+ B2 B
Negative Negative Negative
Moody's on May 12 cut Ukraine's foreign and local
currency ratings to B2 from B1, citing a deteriorating
macroeconomic outlook and uncertainty over capital controls.
(Compiled by Carolyn Cohn and Sebastian Tong; editing by
Stephen Nisbet)
