Moody's: Czech governments maintain ratings

Moody's Investors Service said it expects most rated Czech regional and local governments to weather the current situation of sharp funding contraction and maintain their ratings, provided an economic recovery begins in 2010.

However, weakening budgetary results and tighter liquidity profiles are likely, the agency said, and may create downward rating pressure on selected governments in 2009 and 2010.

GDP growth has become significantly negative in the Czech Republic this year, after several years of substantial increases and should only see a moderate upturn in 2010, Moody's said in a new report.

In turn, the country's governments are experiencing a material decline in tax revenue, which is expected to persist for the remainder of 2009 and throughout 2010, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.