Fitch ups Estonia to AA-

Fitch said it upgraded Estonia's long-term foreign- and local-currency issuer default ratings to AA- from A+. The outlook is stable.

Current account surpluses and continued external deleveraging in the private sector have strengthened Estonia's external position; underpinning a strong net external creditor position equivalent to 16.6% of GDP at end-2017 and mitigating Estonia's potential vulnerability to external shocks derived from its small size and highly open economy, Fitch said.

Meanwhile, despite an increase in unit labor costs, Estonia has maintained competitiveness due to a gradual shift in the tradeable sector toward higher value exports (particularly in services), Fitch noted.

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