Moody's has launched a new credit rating agency Moody's Public Sector Europe (MPSE) on Monday. The new credit rating agency is the first agency, which dedicated to the growing European public sector debt market.

MPSE should help European public service providers such as regional and local governments, universities, hospitals and housing associations expand their financing options and to get greater access to international debt capital markets.

According to Eurostat, the public sector outstanding debt in the EU (excluding central government debt) totalled €1.8 trillion in 2014, increasing at an annual rate of 2.6%. Moody's expects this trend to continue over the longer period.