Moody’s upgraded the credit rating of the Republic of Moldova from B3 to B2 and maintained a stable outlook, according to a statement published on April 3, reports BANI.MD.
The agency based its decision on progress in strengthening state institutions and governance, as well as on the improved capacity of authorities to implement reforms, particularly in the context of the European Union accession process.
Moody’s highlighted that Moldova has increased its resilience to external shocks, including by reorienting energy sources after Russia invaded Ukraine in 2022, which reduced dependence on Russian energy resources.
The agency also noted that the stabilization of the domestic political environment and the authorities’ ability to withstand external interference have lowered political risks, which were previously considered very high.
At the same time, Moody’s warned that geopolitical risks remain significant, especially due to the war in Ukraine and strained relations with Russia, including the possibility of hybrid attacks on infrastructure.
The stable outlook reflects a balance between risks and opportunities. Continued reforms and investments supported by the European Union could strengthen the economy and institutions, while rising public debt or escalating geopolitical tensions could negatively impact the rating.
According to Moody’s, Moldova’s economy remains vulnerable due to modest growth and demographic challenges such as population decline, which limit long-term development potential. The agency estimates that public debt could reach around 45% of GDP by the end of the decade, mainly driven by external financing for reforms and investments.