CHISINAU, Moldova, Oct. 4, 2024 /PRNewswire/ -- Fitch Ratings has assigned the Republic of Moldova a Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B+' with a Stable Outlook. This rating highlights the country's steady commitment to maintaining macroeconomic and financial stability through prudent fiscal policies, a credible inflation-targeting framework, and a flexible exchange rate regime. These factors, combined with a resilient banking sector, demonstrate Moldova's progress in overcoming past challenges and building a more stable financial environment.
One of the key elements supporting this rating is the resilience of Moldova's banking sector. For the past 10 years, Moldova undertook a comprehensive overhaul of its regulatory standards. Today, the sector remains well-capitalized, profitable, and exhibits low levels of non-performing loans. These improvements have fortified the country's financial system, enhancing confidence in its ability to withstand economic pressures.
Victoria Belous, the Minister of Finance of the Republic of Moldova, emphasized the significance of the rating in strengthening Moldova's financial standing:
"The B+ rating with a stable outlook reflects our efforts to maintain financial stability and prudently manage public debt. It sends a strong signal to investors and confirms the effectiveness of our policies. This rating will open new financing opportunities and support Moldova's expansion on international markets."
Her statement underscores the government's focus on responsible fiscal management and how the rating aligns with Moldova's ambitions to attract international investors.
Dumitru Alaiba, the Minister of Economic Development and Digitalization of the Republic of Moldova, also commented on the positive impact of the Fitch rating on Moldova's global investment attractiveness:
"For many years, we have been striving to improve our country's rating. The report from Fitch Ratings is a key indicator for financial markets and institutional investors. The better the rating, the more attractive and stable the country becomes, and the lower the cost of financing. We are acting on all reform fronts within our control. I am pleased to see that our efforts over the past three years are now yielding tangible results. We continue to work hard moving forward."
Moldova's B+ rating, coupled with its stable outlook, confirms the country's commitment to economic reforms and financial discipline. By maintaining prudent fiscal policies and a robust regulatory environment, Moldova is well-positioned to leverage new financing opportunities. As a result, this rating serves as a milestone for the country as it continues to expand its presence on international markets and strengthen investor confidence.
