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October 7, 2019 10:12 am | FILED UNDER: business

Czech Credit Rating Upgraded By Moody’s

By William Malcolm Financial Chart

Moody’s upgrades Czech Republic credit rating

 

Moody’s Investors Service upgraded the Czech Republic’s credit rating one level to Aa3 from A1. Moody’s cited Czechia’s low debt and budget perfomance as key factors in its decision to raise the countries credit rating for the first time since 2002. Moody’s adjusted their outlook rating for the country from positive to stable.

 

Forecast: Czech Debt to continue to decline

 

The budget deficits are expected to fall to under 1% of GDP in the coming years. Positive economic growth will contribute to the decline in deficit. The agency predicts Czech debt will continue to decline this year, reaching 30.8% of GDP in 2020, falling below 30% of GDP by 2023.

 

Strong fiscal framework

 

Moody’s also said “The strong fiscal framework, and adherence to its rules, is another area where the Czech Republic compares strongly to peers.”

 

Stable outlook

 

The governments innovation agenda and  progress in the labor market and education were cited by Moody’s as crucial to the stable rating outlook for the country.

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