Credit rating agency Fitch Ratings revised its ratings perspective Bulgaria, Czech Republic, Latvia and Lithuania for long-term debt in foreign currency and local currency, from positive to stable, due to deteriorating economic and financial outlook of Europe, informs a press release.
'Solid economic and financial ties implies that states in Central and Eastern Europe are negatively affected by a downward revision of growth prospects and financial issues facing the euro area, "said analyst Ed Parker.



Under these conditions, Fitch estimates that the probability of a revision in growth over the next 12 months ratings Bulgaria, Czech Republic, Latvia and Lithuania decreased and stable outlook means more risks facing these countries.



Fitch previous decision to grant a positive outlook for these states was given in a more appropriate global economic environment and reflected the improving trends, including a return to growth, progress in reducing budget deficit and current account deficit and reform the system the pension.



Moreover, Fitch considers the pressures on capital and funding facing European banks have intensified in recent months and increased global risks, which may affect capital inflows, credit growth and domestic demand in Central and Eastern Europe. Euro area parent banks hold 87% of banking assets in the Czech Republic, although local subsidiaries are not dependent on parent banks for financing. In Bulgaria, the euro area parent banks hold 62% of banking assets. In Latvia and Lithuania, parent banks are predominantly from Northern Europe.