Moody's Maintains A1 Rating for Estonia ({{commentsTotal}})

Source: Photo: Reuters/Scanpix

Moody's Investors Service has affirmed Estonia's A1 government bond rating and stable outlook, citing what it called resilient economic growth, moderately high wealth and long-term prospects for economic convergence with the core euro area.

In a statement on Thursday that accompanied its report on the country's creditworthiness, the rating agency stessed that the report is "an update to the markets and does not constitute a rating action."

“The rating is also supported by the government's track record of fiscal rectitude and low gross government debt, which is forecast at 10.2% of GDP this year. Moreover, liquid financial assets equivalent to around 9% of estimated 2013 GDP provide a significant financial cushion in times of stress,” the rating agency said in a press release today.

The agency said the size of the nation's economy, its extreme openness and vulnerability to external shocks are a threat to its current high rating, while the main long-term challenge is the demographic decline.

Estonia's bond rating has remained unchanged since late 2002.