May 25, 2022
Czechia’s current AA- rating has been confirmed by Fitch Ratings, although the country’s long-term outlook has been changed from stable to negative.
The Czech Republic’s credit rating is under jeopardy for the first time since 1998. In a study released this weekend, Fitch Ratings, one of the Big Three credit rating agencies along with Moody’s and Standard & Poor’s, affirmed the country’s current AA- rating but changed its long-term outlook from stable to negative.
For the previous 25 years, the country’s credit rating has been maintained or enhanced by each of the Big Three agencies, although continued economic threats may change that in the future. A credit rating downgrade for the Czech Republic might have serious consequences for an already struggling economy.
Credit ratings provided by the Big Three agencies analyze a country’s or institution’s capacity to repay its debt and are a significant guidance for investors. Investors’ propensity to issue loans, as well as the terms of such loans, such as interest rates, are affected by the ratings.
Source: Expats.cz
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