Fitch raises Czech rating from stable to positive

The global ratings agency Fitch Ratings revised its outlook for the Czech Republic from stable to positive on Friday, reflecting the outcome of the recent election. The move came the same day the country’s president asked Civic Democrat leader Petr Nečas to lead talks on the next government. Centre-right parties gained a decisive majority in the country’s general election last weekend on the promise of introducing tough fiscal reforms. The Civic Democrats and two newcomers TOP 09 and Public Affairs could form a government with a comfortable majority of 118 mandates out of a possible 200 in the lower house. They still have to work out details on the economy, the deficit, fighting corruption and other issues. The majority would be the largest held by any Czech government since the break-up of Czechoslovakia in 1993. Talks are expected to last for several weeks, with Mr Nečas due to update the president in a fortnight on progress made.