Fitch Ratings assigned Moldova a long-term foreign currency issuer default rating of B+ with a stable outlook
As reported by the Ministry of Economic Development and Digitalization, this is 2 lines higher than Moody's rating and is a very important signal for investors. The Fitch report notes the authorities' efforts to maintain macro-financial stability, low levels of government debt and access to external financing. Similarly, the report commends the consistent and prudent state policy. As noted, the National Bank of Moldova has managed to mitigate inflationary pressures, and foreign exchange reserves, according to Fitch, will reach a level of $5.2 billion at year-end, which provides 5.5 months of coverage of current external payments, well above the average of B-rated countries (4.2 months). In addition, the banking system is resilient and well capitalized. Fitch Ratings forecasts a gradual consolidation of the budget deficit to 3.6% in 2026, noting that government debt is significantly lower than the average for countries with the same rating (51%). The same report notes that Moldova's rating will be upgraded once geopolitical tensions continue to decrease. The current account deficit will decrease due to an increase in foreign direct investments or an acceleration of economic growth, driven by investment and institutional capacity. In this context, the Ministry of Economic Development and Digitalization said it continues to focus on reforms to boost economic growth and mainly investment. “These are efforts that improve the country's rating, which is an important indicator for financial markets and institutional investors,” the Ministry emphasized. “The better the rating - the more attractive and stable the country, the lower the cost of financing. I am glad that our at least three-year efforts are yielding the first tangible results,” said Minister of Economic Development and Trade Dmitri Alaiba. // 30.09.2024 - InfoMarket.
