LONDON, July 6 (Reuters) - Fitch raised Ukraine's sovereign
rating to B from B- on Tuesday, citing the government's new loan
agreement with the International Monetary Fund.
Standard & Poor's last month raised its rating for Estonia
to A, saying the Baltic economy would benefit from reduced
foreign-exchange risk and increased access to European capital
markets following its planned accession to the euro zone in
2011.
Also last month, Fitch upped its credit rating outlook for
the Czech Republic to positive from stable, saying the recent
elections would pave the way for a faster pace of budget deficit
reduction.
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 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 Outlook -
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 BBB+
Stable Stable Positive
S&P on June 10 raised its credit rating on Estonia to A,
saying the economy would benefit from reduced foreign-exchange
risk and better access to European capital markets following its
accession to the euro zone in 2011.
GEORGIA B -- B+
Stable Stable
S&P affirmed Georgia's ratings at B on Sept. 28 2009 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 2009 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 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 2009, 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 Aug. 4 2009 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 2009 raised Russia's credit outlook to stable
from negative, saying it was 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 2009, 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 2009, citing
the country's resilience to the global crisis and the easing of
earlier restraints such as inflation.
UKRAINE B B2 B
Stable Negative Stable
Fitch Ratings on July 6 raised its sovereign foreign
currency credit rating on Ukraine one notch to B from B-minus,
citing the government's new loan agreement with the
International Monetary Fund.
S&P on May 17 raised Ukraine's sovereign rating for the
second time in just over two months, citing the country's better
policy coordination and improved liquidity position.
(Compiled by Sebastian Tong and Carolyn Cohn; Editing by Ron
Askew)
