Emerging Europe faces more uncertain outlook, says Fitch

Fri, 11 May 2007 07:13
ABC Money
By : Agencies

'However, upward momentum may be running out of juice, with only three countries - Armenia, Kazakhstan and Ukraine - now on a positive outlook and two - Hungary and Latvia - on a negative outlook,' Fitch said.

LONDON (Thomson Financial) - Fitch Ratings said emerging Europe faces a more uncertain outlook as the region is relatively exposed to the risk of an abrupt tightening in global liquidity, due to substantial external financing requirements.

In a special report, the rating agency said macroeconomic fundamentals in most countries in emerging Europe have continued to strengthen, the global environment remains generally supportive, and sovereign credit ratings have risen further over the past 12 months.

'However, upward momentum may be running out of juice, with only three countries - Armenia, Kazakhstan and Ukraine - now on a positive outlook and two - Hungary and Latvia - on a negative outlook,' Fitch said.

Fitch cited political risks as another factor that weighs on several countries in the region.

TFN.newsdesk@thomson.com

jro

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