Moody's: halo for new EU entrants set to fade

Romania and Bulgaria, which joined at the start of this year, each have Baa credit ratings. The “halo effect” of EU membership means new EU entrants tend to see their credit ratings climb, due to the improved institutional and legal environment, which reduces financial risk.

However, the report predicted that future new entrants, such as – potentially - Turkey, will see a weaker halo effect. The EU is facing greater foreign competition, growing governmental inefficiency and growing internal inequality, that would reduce the perceived advantage of membership, the report said.

Countries that have demonstrated considerable increases in credit ratings include Slovakia, which increased from Ba1 in 1999 to A1 in 2006, and Lithuania, which increased from Ba1 in 1999 to A2 in 2006.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: