Latvia Stability Programme Report

LATVIA'S CREDIT RATINGS ARE STABLE IN «A» CATEGORY Rating agencies acknowledge flexibility of Latvia's economy, moderate level of government debt and swift policymaking that is bolstering its creditworthiness Long-term Foreign Currency Rating Development A+/A1 A/A2 A-/A3 BBB+Baa1 • BBB/Baa2 • Latest Rating Actions On April 29, 2022 Moody's affirmed long-term foreign currency sovereign credit ratings at the A3 level with Stable outlook On June 17, 2022 S&P Global affirmed long-term foreign currency sovereign credit ratings at the A+ level with Stable outlook On August 5, 2022 Fitch affirmed long-term foreign currency sovereign credit ratings at the A-level with Stable outlook BBB-/Baa3 BB+/Ba1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 S&P (A+ Stable) Moody's (A3 Stable) Fitch (A- Stable) • Key Strengths of Latvia's Sovereign Credit Profile The flexibility of the Latvian economy and its resilience to the negative effects of the Covid-19 pandemic and Russia war in Ukraine Moderate government debt-to-GDP and moderate debt service cost burden • Credible policy-making supported by EU and eurozone membership NATO presence mitigates risks from geopolitical tension in region. Following Russian invasion, NATO has reinforced troops actually stationed in Latvia since 2017 • Latvia's achievements to ensure country's energy security . Track record of fiscal consolidation and implementation of structural reforms 7 Source: S&P, Fitch and Moody's

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