Fitch's Czech rating improves to A+

The Fitch Ratings Agency has announced its finding that the Czech Republic's outlook has improved enough for a higher rating. Having been placed at "Stable", the country's rating has been upgraded from A1 to A+. Fitch praised the country's improved fiscal balance, which it found to be 'prudent' predicting a record government budget balance of 0.1 percent as a percentage of GDP as of 2017. From 2009 to 2013, writes Fitch, the country ran a deficit of 4.1 percent o GDP. In addition, it predicts that government debt will fall to 32.2 percent of GDP. This figure was 34.7 percent in 2017 and peaked at 44.9 percent in 2013. The fact that Czech banks are well-capitalized and liquid contributed to the improved rating as does their low ratio of non-performing loans (4.6 percent).