LONDON (Dow Jones) – Fitch Ratings has raised because of the imminent accession of Estonia into the euro area, credit notes of the Baltic country.
As the rating agency announced on Monday, were the long-term rating on liabilities in foreign and local currency to "A" before each of "BBB + "and "A-" raised. The agency increased the short-term rating to " F1 " (previously " F2 ") and the Country Ceiling at ‘ AAA ‘(A + ). The outlook is " stable ".
The rating agency based its decision because of the impending introduction of the euro improved risk profile of the country. Thus, the reduced risks associated with the rather large Aulandsverschuldung and lending in foreign currencies in the domestic banking system , said Fitch. Moreover, the banks now got access to the liquidity of the European Central Bank ( ECB).
In addition, the long-term growth prospects are better in Estonia than in the euro area average . The public finances of the country were under "the strongest in the EU, " the report said.
Estonia becomes the first January 2011 , the 17th Member of the euro area. The country is thus the first Baltic state, which gets the euro, and to Slovenia and Slovakia, the third country in the former Eastern Bloc.
DJG / kth / have / ISJ