March 5 (SeeNews) - The credit profile of Albania, which has an issuer rating of "B1", is constrained by the country's "Low (+)" economic strength with a relatively low degree of diversification compared to peers and a number of structural challenges, Moody's said.
Albania's "Moderate (-)" institutional strength, underlining the government's steps in pursuit of EU accession to address persistent weaknesses in the area of rule of law and control of corruption, the rating agency said on Monday in an announcement of a periodic review of issuers including Albania.
Other challenges include Albania’s "Low" fiscal strength, taking into account the high, albeit declining, public debt burden and contingent liabilities stemming from the energy sector and from an elevated stock of public private partnerships (PPPs), Moody's added.
The country’s credit profile is also hindered by its "Moderate" susceptibility to event risk, driven by banking sector risk due to the high degree of euroization and the sector's weak, albeit improving, asset quality.
“The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future," Moody's noted.
Albania was granted EU candidate status in 2014 and hopes to launch membership negotiations later this year.