Rating Action:
Moody's affirms Albania's B1 rating, maintains stable outlook
02 Aug 2019
London, 02 August 2019 -- Moody's Investors Service ("Moody's") has today affirmed the Government of Albania's B1 long-term foreign and local currency issuer ratings and the B1 foreign currency senior unsecured debt rating. The outlook remains stable.
The decision to affirm the ratings balances the following key rating factors:
(1) Favorable economic prospects constrained by persisting structural challenges and decelerating reform advances;
(2) Debt burden on a declining trajectory but still high relative to B-rated peers and rising contingent liabilities;
(3) Susceptibility to shock stemming from the country's banking system and large government gross financing requirements;
The decision to maintain the stable outlook reflects credit risks being broadly balanced. Albania's macroeconomic profile and debt metrics have overall improved, but the country remains vulnerable to domestic and external shocks as well as to weaker political commitment to reform.
Albania's long-term foreign currency bond and deposit ceilings remain unchanged at Ba2 and B2, respectively. The local currency bond and deposit ceilings remain unchanged at Baa3. The short-term foreign currency bond ceiling and short-term foreign currency deposit ceiling remain at Not Prime (NP).