{"id":443278,"date":"2017-01-14T11:45:54","date_gmt":"2017-01-14T11:45:54","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=443278"},"modified":"2017-01-14T11:45:54","modified_gmt":"2017-01-14T11:45:54","slug":"moodys-changes-moldovas-rating-outlook-b3-stable-b3-negative","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/moodys-changes-moldovas-rating-outlook-b3-stable-b3-negative\/","title":{"rendered":"Moody’s changes Moldova’s rating outlook to B3 stable from B3 negative"},"content":{"rendered":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>

On January 13th,\u00a0Moody’s Investors Service affirmed Moldova’s B3 government issuer ratings and changed the outlook to stable from negative.<\/p>\n

According to Moody’s, the\u00a0key drivers for changing the rating outlook to stable are the\u00a0reduced government funding risks as a result of the new IMF credit facility that began in November 2016, which unleashed additional multilateral and bilateral financing, on one hand, and the the adoption of new banking regulatory framework intended to enhance the governance of the banking system, on the other.<\/p>\n

“The rationale for affirming the B3 government rating reflects the calmer political environment after multiple changes of government leadership in 2014-15 when a huge bank fraud was being unearthed. Government debt has risen sharply due to the costs of covering the central bank’s recapitalization of the banking system but debt remains manageable, with debt affordability still low because of the high share of concessional debt in the government’s debt mix. That said, Moldova’s rating remains significantly constrained by the country’s high levels of poverty, a small economic base, structural impediments to growth and very weak institutional strength. Also reflected in the B3 rating is political risk related to the separatist Transnistria conflict”, reads the press-release<\/a>.<\/em><\/p>\n

Moody’s believes that due to\u00a0important progress of reforms in 2016 in rationalizing Moldova’s economy and avoidance of new financial crises and the Association and DCFTA Agreements with the EU, Moldova will maintain its B3 stable rating. Nevertheless, the government’s track record of consistent reform implementation is poor due to weak institutions and high levels of corruption, along with continued mass emigration, a still-fragile banking system and the volatility engendered by the economy’s heavy reliance on agriculture.<\/p>\n

In July 2015, Moody’s changed<\/a> Moldova’s rating to B3 negative, due to the weak government liquidity position, the political weaknesses and the uncertainty around banking sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>On January 13th,\u00a0Moody’s Investors Service affirmed Moldova’s B3 government issuer ratings and changed the outlook to stable from negative. According to Moody’s, the\u00a0key drivers for changing the rating outlook to stable are the\u00a0reduced government funding risks as a result of the new IMF credit facility that began in November 2016, which unleashed additional multilateral and […]<\/p>\n","protected":false},"author":6,"featured_media":441963,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-443278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"content_social_share":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>

On January 13th,\u00a0Moody’s Investors Service affirmed Moldova’s B3 government issuer ratings and changed the outlook to stable from negative.<\/p>\n

According to Moody’s, the\u00a0key drivers for changing the rating outlook to stable are the\u00a0reduced government funding risks as a result of the new IMF credit facility that began in November 2016, which unleashed additional multilateral and bilateral financing, on one hand, and the the adoption of new banking regulatory framework intended to enhance the governance of the banking system, on the other.<\/p>\n

“The rationale for affirming the B3 government rating reflects the calmer political environment after multiple changes of government leadership in 2014-15 when a huge bank fraud was being unearthed. Government debt has risen sharply due to the costs of covering the central bank’s recapitalization of the banking system but debt remains manageable, with debt affordability still low because of the high share of concessional debt in the government’s debt mix. That said, Moldova’s rating remains significantly constrained by the country’s high levels of poverty, a small economic base, structural impediments to growth and very weak institutional strength. Also reflected in the B3 rating is political risk related to the separatist Transnistria conflict”, reads the press-release<\/a>.<\/em><\/p>\n

Moody’s believes that due to\u00a0important progress of reforms in 2016 in rationalizing Moldova’s economy and avoidance of new financial crises and the Association and DCFTA Agreements with the EU, Moldova will maintain its B3 stable rating. Nevertheless, the government’s track record of consistent reform implementation is poor due to weak institutions and high levels of corruption, along with continued mass emigration, a still-fragile banking system and the volatility engendered by the economy’s heavy reliance on agriculture.<\/p>\n

In July 2015, Moody’s changed<\/a> Moldova’s rating to B3 negative, due to the weak government liquidity position, the political weaknesses and the uncertainty around banking sector.<\/p>\n

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