Moody's raises foreign-currency country ceilings due to revised methodology

Moody's Investors Service said that a new approach to setting its foreign-currency country ceilings for bonds has resulted in upgraded ceilings for 70 countries. Country ceilings already carrying Moody's top rating of Aaa were unaffected by the new methodology and no country ceiling was downgraded as a result of the revised approach.

Neither government bond ratings nor foreign-currency ceilings for bank deposits are affected by this action.

The ceilings of the vast majority of countries rated by Moody's have been upgraded by at least one notch. In some cases, such as the newer members of the European Union, the upgrades are of four and five notches, bringing those countries into closer alignment with fellow E.U. members.

Countries that have the U.S. dollar as their legal currency and countries with foreign-currency bond ceilings already at their local-currency guidelines were not affected by the change in methodology because moratorium risk assessments do not change the risk profiles embedded in those existing ceilings.

Prompted by the revised ceilings, Moody's said, the foreign-currency issuer ratings of non-government issuers may also be upgraded.

Moody's foreign-currency country ceilings for bonds, both long- (LT) and short-term (ST), Prime (P) and Not Prime (NP), now include: Argentina: LT, B2 from B3, (stable outlook); ST, NP; Belize: LT, Caa1 from Caa3 (stable outlook); ST, NP; Bolivia: LT, B2 from B3 (stable outlook); ST, NP; Brazil: LT, Ba2 from Ba3 (positive outlook); ST, NP; Bulgaria: LT, A1 from Baa3 (stable outlook); ST, P-1; Chile: LT, A2 from Baa1 (rating under review); ST, P-1; China: LT, confirmed at A2 (stable outlook); ST, P-1; Colombia: LT, Ba1 from Ba2 (stable outlook); ST, NP; Costa Rica: LT, Baa3 from Ba1 (negative outlook); ST, P-3; Croatia: LT, A1 from Baa3 (stable outlook); ST, P-1; Czech Republic: LT, Aa1 from A1 (positive outlook); ST, P-1; Dominican Republic: LT, B1 from B3 (stable outlook); ST, NP; Ecuador: LT, confirmed at Caa1 (positive outlook); ST, NP; Egypt: LT, Baa2 from Ba1 (stable outlook); ST, P-2; El Salvador: confirmed at Baa3 (stable outlook); ST, P-3; and Estonia: LT, Aa1 from A1 (positive outlook); ST, P-1.

Further countries include: Guatemala: LT, Ba1 from Ba2 (stable outlook); ST, NP; Honduras: LT, Ba3 from B2 (stable outlook); ST, NP; Hong Kong: LT, Aa1 from A1 (stable outlook); ST, P-1; Hungary: LT, Aa1 from A1 (stable outlook); ST, P-1; India: LT, Baa2 from Baa3 (stable outlook); ST, P-2; Israel: LT, Aa1 from A2 (stable outlook); ST, P-1; Korea: LT, A1 from A3 (positive outlook); ST, P-1; Latvia: LT, Aa1 from A2 (stable outlook); ST, P-1; Lebanon: LT, B2 from B3 (stable outlook); ST, NP; Malaysia: LT, confirmed at A3 (stable outlook); ST, P-1; Mexico: LT, A1 from Baa1 (stable outlook); ST, P-1; Morocco: LT, Baa2 from Ba1 (stable outlook); ST, P-2; Nicaragua: LT, B3 from Caa1 (stable outlook); ST, NP;

Other countries include: Panama: LT, confirmed at Baa1 (stable outlook); ST, P-2; Paraguay: LT, B3 from Caa1 (stable outlook); ST, NP; Peru: LT, Ba2 from Ba3 (stable outlook); ST, NP; Philippines: LT, Ba3 from B1 (negative outlook); ST, NP; Poland: LT, Aa1 from A2 (stable outlook); ST, P-1; Russia: LT, A2 from Baa2 (stable outlook); ST, P-1; Singapore: LT, confirmed at Aaa (stable outlook); ST, P-1; South Africa: LT, A2 from Baa1 (stable outlook); ST, P-1; Suriname: LT, Ba2 from B1 (stable outlook); ST, NP; Taiwan: LT, confirmed at Aa3 (stable outlook); ST, P-1; Thailand: LT, A3 from Baa1 (stable outlook); ST, P-2; Trinidad and Tobago: LT, A2 from Baa2 (stable outlook); ST, P-1; Tunisia: LT, A3 from Baa2 (stable outlook); ST, P-2; Turkey: LT, Ba1 from Ba3 (stable outlook); ST, NP; Ukraine: LT, Ba3 from B1 (stable outlook); ST, NP; Uruguay: LT, B1 from B3 (stable outlook); ST, NP; and Venezuela: LT, B1 from B2 (stable outlook); ST, NP.

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