Portrait of an Ascending Sovereign Credit
Latvia's Credit Ratings are stable in A category
Rating agencies acknowledge Latvia's dynamisms and flexibility of economy, strong banking sector and institutional strength
as key factors bolstering its creditworthiness.
Long-term Foreign Currency Rating Development
A+ (Stable)
S&P
Moody's A3 (Stable)
2012
-Fitch
A- (Stable)
2013
2014
2015
2016
2017
2018
2019
A+/A1
A/A2
A-/A3
BBB+Baa1
BBB/Baa2
BBB-/Baa3
BB+/Ba1
2020
•
The Felxibility and dynamisms of the economy
Key Strengths of Latvia's Sovereign Credit Profile
Prudent fiscal policy and contained vulnerabilities of financial
system
Key Risk Factors of Latvia's Sovereign Credit Profile
•
External financing risks and persistent possibility of geo-political
tensions with Russia continue to constrain the ratings
Latvia is a small and highly open economy, making it vulnerable to
external shocks
•
A low level of government debt relative to GDP
•
•
Record of fiscal consolidation and implementation of structural
reforms
Increase in general government debt and deterioration in external
finances
•
Challenges in demographic outlook and labor market
.
Membership of large international organiationa and unions (EU,
NATO, OECD, etc.)
•
Reputational risks in financial sector remain
•
Strong banking sector, with markeable acccomplishmets in field of
figthing money laudering and financig terrorism
Source: S&P, Fitch and Moody's
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