Fitch downgraded ratings for four Eastern European countries, including lowering Romania to below investment-grade, while revising its outlooks on a handful of other emerging markets due to the adverse impact of a global recession.
The actions are part of Fitch’s review of 17 major investment-grade emerging market economies, which resulted in four downgrades and seven outlook revisions, according to its statement on Monday. The remaining 13 sovereign ratings were affirmed. Fitch cut ratings on Bulgaria and Kazakhstan by one notch to BBB-, the lowest investment-grade level, while lowering Hungary to BBB from BBB-plus.
The ratings agency cut Romania by two notches to BB-plus from BBB, putting the east European country in “junk” status. The ratings agency also cut its outlooks on South Korea, Mexico, Russia and South Africa to negative from stable, while those of Chile and Malaysia were cut to stable from positive. (Reuters)