The international agency of financial rating Moody’s announced in a report that it kept Moldova at the B3 level, but it reduced the perspective from Stable to Negative.
According to Moody’s, the main causes of this decision are the big risks regarding the state resources, but also the incertitude regarding the crisis in the banking system.
“Keeping the B3 rating for Moldova reflects a series of positive factors, despite the negative levels of the perspective. Moody’s took in account the strong fiscal position of Moldova since the end of 2014. According to the Ministry of Finances, the public debt in the GDP is only 24,8%, comparing to the average 48% of the B group”, reports Moody’s.
Furthermore, Moody’s registered a little improvement in the institutional capacity of the Republic of Moldova, which is explained by the World Bank Worldwide Indicators from 2011.
The report stresses that the signing of the Association Agreement with the European Union in 2014 will support reforms and will offer export and investment opportunities, and will help the growth of Moldova’s economic power.
Reportedly, the economic growth in Moldova will be 1%, and the fiscal deficit will rise up to 5,3% from the GDP.
Moody’s thinks that the insecure political situation led to the cancelling of the signing the agreement with the International Monetary Fund, which asked its creditors to suspend the financial assistance for Moldova.