Moody's lowers outlook for Czechia from stable to negative

The international credit rating agency Moody's Investors Service has lowered the outlook for the Czech Republic from stable to negative due to a possible disruption of Russian gas supplies. In a press release, the rating agency wrote that the high dependence of Czechia on Russian gas, in combination with limited scope to move away from it in the near term, means that a disruption in supplies could lead to gas rationing and plunge the country into a deep economic recession. However, Moody's still confirmed the credit reliability assessment of Czechia at grade Aa3.

Russia has significantly reduced gas supplies to the European Union in recent weeks and has already completely cut supplies to some EU member states.