Czech Republic's rating increases

“The credibility of the Czech Republic is growing. This puts us above Italy,” rejoices Hospodářské noviny, after Standard & Poors increased the countrys credit rating yesterday, by two notches. In a rare move during the present debt crisis, the rating agency has explained that this increase, from A to AA for long-term foreign currency lending and from A+ to AA for long-term local currency lending, followed a change in its own rating criteria, which from now on will emphasize the government`s political and economic orientation. However, the rating increase counts on the government’s pushing through the planned pension, welfare and fiscal reforms. Prime minister Petr Nečas therefore pointed out the necessity to pursue reforms further: “Just as a rating improves, it may of course worsen,” he warned.