LONDON, July 23 (Reuters) - Moody's on Friday put Hungary on
review for a possible downgrade following the breakdown of talks
between Budapest and the IMF.
Standard & Poor's said earlier this week that it expected to
raise Ukraine's rating from B if the country finalises a $15
billion IMF deal. Ukraine reached a preliminary deal with the
IMF after pledging to implement austerity measures.
Fitch upgraded Ukraine's rating to B.
Fitch raised Estonia's sovereign rating to A from BBB+ on
July 19, citing European Union approval for the country's
ascension to the euro.
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
BELARUS B+ B1 -
Negative -
S&P on May 4 affirmed Belarus' B+ rating, saying that the
country's public finances have weathered the economic downturn
well. But the rating agency has a negative credit outlook on
Belarus as the country's gross external financing needs are
continuing to rise.
BULGARIA BBB Baa3 BBB-
Stable Positive Negative
Moody's said on April 21 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, citing the
government's tight monetary policy and relatively low budget
deficit.
CROATIA BBB Baa3 BBB-
Negative Stable Negative
Fitch last May 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 Positive
Fitch on June 4 raised its credit outlook on the Czech
Republic to positive from stable, while affirming its A+ rating
on the country. The rating agency said there was a strong
likelihood that recent elections would lead to a formation of a
coalition government with a strong mandate for a faster pace of
budget deficit reduction than expected.
ESTONIA A A1 A
Stable Stable Stable
Fitch on July 19 raised its credit rating on Estonia to A,
following European Union approval on July 13 for entry into the
euro area in 2011. It said that Euro membership would reduce
foreign-exchange risk.
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
Moody's on July 23 put Hungary on review for a possible
downgrade, citing increased fiscal risks following the
suspension of its talks with the IMF and the EU on its $25
billion loan deal [].
ICELAND BBB- Baa3 BB+
CW negative Negative Negative
Moody's cut its ratings outlook for crisis-hit Iceland to
negative from stable on April 6, citing liquidity uncertainty
and delays in resolving the country's Icesave debt.
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 last April 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 July 16 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, 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
Moody's said on May 28 that they may raise Turkey's Ba2
rating if parliament approves new rules to limit state spending
drafted by the government. The ruling party wants to push the
bill through legislature before the summer recess in July.
S&P on Feb. 19 raised Turkey's rating to BB, two notches
below investment grade, praising the country's fiscal
management.
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 B B
CW positive Negative Stable
S&P said on July 22 that it has placed Ukraine's credit
rating on CreditWatch positive and expects to raise the rating
by one notch if the country finalises a $15 billion IMF loan
deal and implements austerity measures. [].
(Compiled by Sebastian Tong, Carolyn Cohn, Eunice Ng)
