Fitch upgrades outlook on Estonia rating

"The agency's assessment reflects the growing understanding that the adjustment of the Estonian economy has been rapid and the economy has coped well with the impacts of the crisis," Bank of Estonia Vice President Marten Ross said.

"The flexibility of the economy and the strengthened budget position have in the agency's assessment also improved Estonia's chances of joining the euro zone," he added.

Estonia's ratings are supported by the political and institutional strengths associated with its EU membership, the flexibility of its economy and its unblemished modern debt-servicing record, Fitch said.