The agency said 11 countries -- ranging from
"Macroeconomic stress has been gradually building across Emerging Europe and is starting to reach critical levels," said Moody's vice president Kenneth Orchard, author of a report on the countries and their credit ratings.
"The probability of these imbalances ending in hard landings has increased with the recent turmoil in global capital markets."
Moody's said its ratings have so far assumed a relatively orderly reduction in growth and imbalances, rather than any "hard landing," which would encompass problems in the financial sector as well as a decline in the currency.
Moody's said its ratings for these countries were generally more positive compared to the credit default swaps (CDS) markets, which are factoring in a material risk of debt default in some countries.
But it warned of hard landing risks in
Moody's said government finances remained generally strong across the countries surveyed, with public debt levels healthy.
But debt ratios were on the rise due to a decline in physical revenues and this was leading to budget deficits.
Moody's said some countries, in particular
However, outright default by these creditors was unlikely as governments could seek temporary finance from the International Monetary Fund, World Bank, the European Commission or neighboring central banks.