Moody's affirmed Govt of Albania B1........>

EMERGING: Moody's affirmed Govt of Albania B1 long-term foreign and local

currency issuer ratings and B1 foreign currency senior unsecured rating, with

stable outlk. It said "decision" to affirm rtgs, maintain stable outlk due to

"1)progress on fiscal consolidatn, structural reforms and institutional capacity

building; (2) structural economic challenges, despite improving growth

prospects; and (3) a still high, albeit declining, debt burden with unfavorable

structure of domestic debt."

- Albania lg-term foreign curr. bond & deposit ceilings "remain unchanged at Ba2

and B2, respectively; Baa3 local currency bond and deposit ceilings unchanged.

- It cited "significant progress" in "recent years" in "fiscal consolidation and

structural and institutional reforms," which support current rating by helping

to reverse the damage to the govt's balance sheet caused by the financial

crisis. However, offsetting these positive developments are a number of credit

challenges that continue to weigh" on Albania "credit profile" such as a "still

high, albeit declining, debt burden, still large financing needs reliant on the

banking system, and a small economy with a narrow export base."