Fitch Upgrades Estonia's Rating Outlook

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Friday, Fitch Ratings revised the outlook on the Republic of Estonia's long-term foreign and local currency Issuer Default Ratings or IDR to stable from negative. The agency also affirmed long-term foreign currency IDR at 'BBB+' and long-term local currency IDR at 'A-'.

Eral Yilmaz, Director in Fitch's Sovereigns group said, "The change to a Stable Outlook is based on Fitch's assessment that the downside risks to Estonia's rating have moderated and are balanced by the increased probability that Estonia could adopt the euro in January 2011."

The rating agency added that Estonia's 2009 general government budget deficit is likely to have remained below the 3% of GDP reference rate, suggesting that the nation remains outside the EU's Excessive Deficit Procedure. Fitch would expect to upgrade Estonia's Long-term foreign currency IDR following a decision that it could adopt the euro, the report said.

Friday, Fitch Ratings revised the outlook on the Republic of Estonia's long-term foreign and local currency Issuer Default Ratings or IDR to stable from negative. (Market News Provided by RTTNews)