S&P Global Market Intelligence presents a summary of ratings actions on sovereigns and other key territories from Sept. 2 to Sept. 8.
EUROPE
* Fitch Ratings upgraded Ukraine's long-term foreign- and local-currency issuer default ratings to B from B-, while revising the outlook to positive from stable, citing the country's improving macroeconomic stability and falling public debt levels, coupled with a decline in political uncertainty. The rating agency expects Ukraine to continue with robust policy-making, structural reforms and to engage with international financial institutions under the newly formed government of Prime Minister Oleksiy Honcharuk. Ukraine's short-term ratings were affirmed at B.
* Moody's revised the outlook on Serbia's Ba3 long-term issuer and senior unsecured ratings to positive from stable, citing the country's improving debt levels. The outlook revision also reflects Serbia's medium-term economic growth prospects, which will assist in the government's efforts to further reduce debt.
* S&P Global Ratings affirmed Kazakhstan's long- and short-term foreign- and local-currency sovereign credit ratings at BBB-/A-3, with a stable outlook. The rating agency expects the country's government and external balance sheets to stay robust in the next two years, with support from stable and effective policy-making.
* Fitch also affirmed Kazakhstan's issuer default ratings at BBB/F2, with a stable outlook, citing the country's strong public and external balance sheets, large government savings and substantial foreign assets, offset by high commodity dependence, a weak banking sector and low per capita GDP.
* Fitch affirmed Luxembourg's issuer default ratings at AAA/F1+, with a stable outlook, citing the country's high per capita income, robust governance indicators and public finances, offset by higher macroeconomic volatility as a result of its heavy reliance on the financial services sector. Fitch noted that Luxembourg has the lowest public debt among sovereigns rated AAA.
* DRBS also confirmed Luxembourg's long- and short-term foreign- and local-currency issuer ratings at AAA/R-1 (high), with a stable trend, citing the country's robust economic prospects and its capacity to face adverse shocks.
AMERICAS
* Fitch upgraded Argentina's issuer default ratings to CC/C from Restricted Default, following the country's first payment of short-term debt instruments since their maturities were extended in late August. Fitch said the ratings action reflects the probability of a further default or debt restructuring.
ASIA
* Fitch downgraded Hong Kong's long-term ratings to AA from AA+, while revising the outlook to negative from stable, citing its expectations that the territory's GDP will stall in 2019 due to months of political unrest in response to now-withdrawn extradition bill. Fitch said the protests have affected the stability and dynamism of Hong Kong's business environment and it expects the city's sociopolitical linkages to mainland China to result in bigger institutional and regulatory challenges. The rating agency affirmed Hong Kong's short-term ratings at F1+.
MIDDLE EAST AND AFRICA
* Fitch affirmed Rwanda's issuer default ratings at B+/B, with a stable outlook. The ratings reflect the country's fiscal and current account deficits, high external debt levels and low per capita income, offset by stable macroeconomic conditions, low inflation and high growth prospects, with support from robust governance and a favorable business climate.
* Fitch affirmed the Republic of the Congo's issuer default ratings at CCC/C, citing improved liquidity with support from oil-related surpluses and a strong policy framework under a new IMF program, offset by risks from the program and limited funding options. Fitch added that high debt levels and weak public financial management are also weighing down the economy.
* Capital Intelligence Ratings affirmed Egypt's long- and short-term foreign- and local-currency ratings at B+/B, with a stable outlook.
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