Investor Presentaiton
6
LATVIA'S CREDIT RATING REVIEWED AND REMAINS 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+Baa1
.
BBB/Baa2
.
BBB-/Baa3
BB+/Ba1
2012 2013
2014
2015 2016 2017 2018 2019 2020 2021
S&P (A+ Negative)
-Moody's (A3 Stable)
2022 2023
Fitch (A- Positive)
Source: S&P, Fitch and Moody's
Key strengths of Latvia's sovereign credit profile
Credible policy-making supported by EU, Eurozone and NATO
membership, governance indicators
•
NATO presence mitigates the geopolitical risks
•
Moderate government debt-to-GDP ratio and moderate debt service costs
•
The flexibility and adaptability of the Latvian economy
•
•
Track record of fiscal consolidation and implementation of structural
reforms after 2008/2009 crisis
Moderate private sector debt level
Source: S&P, Fitch and Moody's, Treasury
Latest rating announcements
A-/A3/A+
Positive/Stable/Negative
On July 28, 2023 Moody's published announcement that Latvia's
long-term foreign currency sovereign credit ratings remains at the A3
level with Stable outlook (did not contain Rating action)
On July 28, 2023 Fitch affirmed long-term foreign currency sovereign
credit ratings at the A- level, and changed outlook from Stable to
Positive (contained Ratings action)
On June 16, 2023 S&P Global published announcement that Latvia's
long-term foreign currency sovereign credit ratings remains the A+
level with Negative outlook (did not contain Rating action)
Source: S&P, Fitch and Moody's
ISS ESG Country rating for Latvia
ESG Country Rating
D-
D+
C-
poor
C
medium
C+
B-
B
good
B+
A-
A
A+
excellent
10
8
7
Decile rank
6 5
4
3
1
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%9
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