Moody's raises Estonia's ratings outlook

On Wednesday, March 31, Moody's revised Estonia's rating outlook to Stable from Negative and affirmed the country's rating at A1.

"The decision of Moody's refers to an improvement in Estonia's financial and economic situation compared to the same period a year ago," Said Deputy Governor of Eesti Pank Märten Ross.

According to the rating agency, the country's economy and financial sector are exhibiting signs of a gradual recovery. The government's impressive measures to improve the budgetary position also have a role to play here - the steps taken provide an additional guarantee to the adoption of the euro.

Deputy Governor Ross drew attention to the rating agency's observation that Estonia must continue to deal with the issue of raising competitiveness. "Although there are signs of a successful economic adjustment, it is important to carry on discussions regarding structural reforms and fiscal issues. And these discussions should result in decisions," Ross noted.

On Tuesday, Fitch Ratings announced that Estonia's credit ratings have been placed on Rating Watch Positive.

The last rating action of Moody's on Estonia took place on 23 April 2009, when the rating agency affirmed Estonia's sovereign rating at A1 and left the outlook from stable to negative.
The A1 rating has been valid since November 2002.

The press release of Moody's is available at the web site of Eesti Pank.

Further information:
Viljar Rääsk
Public Relations Office
Telephone: +372 6680 745, +372 5275 055
E-mail: viljar.raask [at] eestipank.ee