Moody`s reviews Albanian economy – High public debt burden and GDP schemes remain strong challenges
Moody’s has closed the periodic review of Albania’s debt rating. This action of the appraisal giant is not valid as a decision on the debt rating, as it is part of the periodic review with frequency twice a year. Albania’s credit profile, in “B1”, is forced by the assessment in “ba3” of the strength of the economy, reflecting a small economy, exposed to environmental risks, as well as a low level of diversification, compared to similar countries in terms of debt rating, as well as a series of structural challenges “- says Moody`s between the lines in the announcement for our country.
In terms of assessing the strength of government and institutions, with the world at “ba2”, the government’s efforts to pursue integration into the European Union are noted, addressing the continuing weakness in terms of the rule of law and the control of corruption. . Fiscal strength, meanwhile, with a grade of “b1” is driven by the high burden of public debt and arrears from the energy sector and high dependence on Public Private Partnership (PPP) schemes to encourage investment. With a grade of “ba”, risk sensitivity is driven by the high euroization of the banking sector, underlines, among others, the credit rating agency, Moody`s.
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