Moody’s annual credit analysis report: Albania’s B1 rating is stable

Moody’s has published the annual credit analysis report on the Albania’s economy performance. Moody’s rates Albania B1 with a stable outlook. According to it, the fiscal consolidation of the country, the arrangement with the IMF and the new measures undertaken make a turning point to the decline in fiscal strength. Moody’s review evaluates as positive the winning of the EU candidate status by Albania in June 2014, and shows that the country has made progress. The report foresees positive effects from Albania’s integration to EU which has proven to be an important driver of foreign direct investment inflows among countries in the region.

Albania’s economy challenges relate, according to the report, to Albania’s high outstanding dept ratio.  Moody’s underlines the Albanian government’s efforts and initiatives in working with key institutions in order to improve the country’s domestic debt structure. Another challenge Albania’s economy is facing according to Moody’s, links to the non performing loans of second tier banks.

The outlook on Albania’s B1 rating is stable. Progress with respect to structural reforms, specifically tackling corruption, the strengthening of property rights and judicial efficiency, would result in improved competitiveness and enhanced business attractiveness.

News source/photo credits: Moody’s