OREANDA-NEWS. August 13, 2010. The rating outlook is stable. According to Vice President-Senior in Moody's Sovereign Risk Group Alexander Kockerbeck, the B3 rating reflects the Moody’s assessment that Moldova's economic stability remains very low, in spite of high GDP growth before the global crisis registered.

Moody’s also notes the growth is expected to be weaker because of reduction of migrant workers’ remittances and foreign direct investment. On the other hand, lower capital inflows should reduce future macroeconomic instability, which often follows the periods of rapid credit growth. Moody's has also assigned a foreign currency bond ceiling of B2 and a foreign currency bank deposit ceiling of Caa1 to Moldova.

Additionally, Moldova was assigned long-term bond and bank deposit ceilings at Ba2 in national currency. Moody's expects that the Moldova’s economy will recover in 2010 and 2011 from a sharp repressing during the global crisis. There is a possibility that Moldova's rating could come under negative pressure if the country faces new difficulties for its debt servicing capacity from unfavorable weather conditions, affecting the agricultural sector, migrant workers' remittance inflows reduction and/or a lack of privatization receipts or multilateral funding.