Latvia Economic and Defence Update

6 LATVIA'S CREDIT RATING RECENTLY REVIEWED AND REMAINS STABLE IN «A» LEVEL GROUP Rating agencies acknowledge flexibility of Latvia's economy, moderate level of government debt and swift policymaking that bolsters its creditworthiness Long-term foreign currency rating development A+/A1 A/A2 A-/A3 BBB+Baal • BBB/Baa2 • BBB-/Baa3 BB+/Ba1 2012 2013 2014 2015 2016 2017 2018 2019 S&P (A+ Stable) 2020 2021 2022 Moody's (A3 Stable) Fitch (A- Stable) Latest rating actions A-/A3/A+ Stable/Stable/Negative On April 29, 2022 Moody's affirmed long-term foreign currency sovereign credit ratings at the A3 level with Stable outlook On December 6, 2022 S&P Global affirmed long-term foreign currency sovereign credit ratings at the A+ level and changed outlook from Stable to Negative On February 3, 2023 Fitch affirmed long-term foreign currency sovereign credit ratings at the A- level with Stable outlook ISS ESG Country rating for Latvia . • • • • Source: S&P, Fitch and Moody's Key strengths of Latvia's sovereign credit profile The flexibility and adaptability of the Latvian economy and resilient export sector Track record of fiscal consolidation and implementation of structural reforms Moderate government debt-to-GDP ratio and moderate debt service costs Credible policy-making supported by EU, Eurozone and NATO membership Latvia's preparedness and progress made to ensure country's energy security ESG Country Rating D- D D+ C- poor C medium C+ B- B good B+ A- A A+ excellent 10 7 Decile rank 6 5 3 2 Low relative performance High relative performance Source: https://www.issgovernance.com/esg/ratings/country-rating/ and https://www.kase.gov.lv/sites/default/files/public/FRD/%C4%80%C4%93jie%20aiz%C5%86%C4 %93mumi/2021_11_30_FINAL_SPO-20211130-Latvia.pdf

View entire presentation