LONDON, Nov 24 (Reuters) - Fitch on Wednesday lifted its
outlook on Turkey's rating to positive from stable, praising the
country's economic recovery and improving public finances.
The ratings agency said an upgrade was possible if Ankara
continued to reduce the government's debt-to-GDP ratio.
Sovereign credit ratings in eastern and central Europe have
largely begun to improve after foreign debt and banking problems
triggered downgrades during the global financial crisis.
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 because 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+
Positive Stable Positive
Standard & Poor's on August 10 revised its outlook on the
Czech Republic's A long-term foreign currency rating to positive
from stable, and said upgrades are likely if the new coalition
government manages to implement spending cuts.
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 to 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 2009 with a
stable outlook, saying the economic impact from the country's
brief but intense war has been offset by substantial
international aid.
HUNGARY BBB- Baa1 BBB
Negative Negative Negative
S&P on Nov. 3 affirmed Hungary's BBB- credit rating but kept
its negative outlook on the country, warning that the deficit
would rise again in 2013 after the special taxes levied on
certain sectors expire at the end of 2012.
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 Iceland's outlook to negative from stable on
July 29, due to a recent Supreme Court ruling on the illegality
of foreign exchange-linked loans and failure to resolve the
dispute with Britain and the Netherlands over deposits frozen
when Icesave bank collapsed in 2008.
KAZAKHSTAN BBB- Baa2 BBB-
Stable Stable Stable
Fitch on Dec 16, 2009, raised Kazakhstan's rating outlook to
stable from negative, citing higher oil prices and capital
inflows.
LATVIA BB Baa3 BB+
Stable Stable Positive
Fitch on Sep 3 raised its outlook on Latvia's ratings to
stable from negative, saying the country's financial and
economic stabilisation and improved external liquidity.
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
Fitch on Oct 27 raised Macedonia's outlook to stable from
negative on Sept. 21 2009, saying pressures on the country's
external finances were reduced as the current account deficit
had narrowed significantly.
MOLDOVA -- Caa1 B-
Stable Stable
Fitch in April 2009 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 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 Positive
Fitch on Sept 8 raised Russia's credit outlook to positive
from stable, saying sizeable private sector debt repayments and
the stabilisation in the banking sector had reduced the
country's financial vulnerabilities.
SERBIA BB- -- BB-
Stable -- Stable
Fitch on Nov 11 raised its outlook on Serbia to stable from
negative, citing the reduced risk of an external financing
crisis and the resumption of economic growth.
TURKEY BB Ba2 BB+
Positive Positive Positive
Fitch on Nov 24 lifted its outlook on Turkey's rating and
said a ratings upgrade was possible if Ankara continued to
reduce its government debt-to-GDP ratio.
Moody's on Oct. 5 raised Turkey's rating outlook to positive
from stable saying the country's economic and fiscal resilience
had improved.
UKRAINE B+ B2 B
Stable Stable Stable
Moody's on Oct 11 raised Ukraine's credit rating outlook to
stable from negative, citing improved external liquidity
following a new IMF agreement and recent Eurobond launch.
(Compiled by Sebastian Tong, Carolyn Cohn, Sujata Rao)
