KC Grupp Reports Estonia's Credit Rating Unchanged According to Moody's and Standard & Poor's
The investment company, KC Grupp, owned by Estonian entrepreneur Margus Reinsalu, announces both Moody's and Standard & Poor's have confirmed Estonia's sovereign ratings are at the same level. According to Standard & Poor's comparison of the Baltic States, Estonia holds the highest credit rating among the countries.
Tallinn, Estonia (PRWEB) May 26, 2009 -- KC Grupp, http://www.kcgrupp.com, a leading investment company in Estonia, reports the international rating agency Moody's has lowered the credit rating of both Latvia and Lithuania, but left Estonia's credit rating unchanged. Estonia's sovereign rating level was confirmed at A1. The upper limit of the long-term foreign currency deposits rating is also A1. The outlook of this rating is negative. The upper limit of the foreign currency liabilities rating of the businesses operating in Estonia is Aa1 and its outlook is stable.
Moody's noted that the government works hard to keep the budget deficit under control, liquidity is guaranteed and the government is relatively well isolated from the problems of the banking sector. According to Standard & Poor's the ratings are high thanks to Estonia's strong institutions, but also the low level of government debt and noteworthy reserves. In addition, the ratings are supported by Estonia's competitive, flexible and open economy and the perspective of accession to the euro area.
KC Grupp owner Margus Reinsalu says he is pleased with Estonia's results from the rating agencies, acknowledging the efforts of the Estonian government in the context of economic crisis.
According to Moody's, the creditworthiness of the Estonian government will most probably survive the deep and possibly long economic decline. The agency noted that the government works hard to keep the budget deficit under control, liquidity is guaranteed and the government is relatively well isolated from the problems of the banking sector.
In addition, Standard & Poor's confirmed the sovereign ratings at the same level - A and A-1. The rating outlook was negative. According to the agency, the credit rating is high thanks to Estonia's strong institutions, but also the low level of government debt and noteworthy reserves. In addition, the rating is supported by Estonia's competitive, flexible and open economy and the perspective of accession to the euro area.
The reason for the negative rating outlook, according to Standard & Poor's, was the risks that originated from the unbalanced economies of Latvia and Lithuania. Future ratings might be also be influenced by the potential postponement of accession to the euro area.
Reinsalu feels that it is critically important for Estonia that the rest of the world and other markets are able to differentiate between the economies of the different Baltic States. "The three countries are distinctive and the analysis of the rating agencies has stressed this clearly and unequivocally. Also the behaviour of governments has been different in this situation of crisis. Estonia has worked hard and it has been noticed," says Reinsalu.
About KC Grupp
KC Grupp is an Estonian investment company owned by entrepreneur, Margus Reinsalu. Along with numerous construction and development projects in Estonia, Reinsalu also develops luxury resorts in different parts of the world under the name of the global real estate developer, Property Logic. Currently, Reinsalu is involved in two multi-million dollar development projects in Morocco and Brazil, with an eye on the Arabian Gulf.
Media Contact:
Dainis Hirv
+372 50 21 995
dainis(at)corpore.ee
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