Latvia's Economic Response to Covid-19
Latvia's Credit Ratings are stable in A category
Rating agencies acknowledge flexibility of Latvia's economy, moderate level of government debt and prudent fiscal
management as key factors bolstering its creditworthiness.
Long-term Foreign Currency Rating Development
S&P (A+ Stable)
-Moody`s ( A3 Stable)
Fitch (A- Stable)
2012
2013
2014
2015
2016
2017
2018
2019
2020
A+/A1
A/A2
A-/A3
BBB+Baa1
BBB/Baa2
BBB-/Baa3
BB+/Ba1
2021
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Key Strengths of Latvia's Sovereign Credit Profile
Prudent fiscal management and contained vulnerabilities of financial
system
The flexibility and dynamisms of the economy and economy's sound
external profile
Key Risk Factors of Latvia's Sovereign Credit Profile
External financing risks and persistent possibility of geo-political tensions
continue to constrain the rating
Latvia is a small and open economy, making it vulnerable to external
shocks
•
Latvia's inability to reduce government debt to GDP level
•
•
Latvia's moderate government debt to GDP level
•
Record of fiscal consolidation and implementation of structural reforms,
effective policymaking
•
In previous years created fiscal space to mitigate the impact from various
shocks to the economic
•
.
Membership of large international organizations and unions (EU, NATO,
OECD, etc.)
Source: S&P, Fitch and Moody's
6
Challenges in demographic outlook and labour market, and comparably
low income level
Reputational risks in financial sector remain
Risk of structural shocks to the key sectors or weakening of international
competitivenessView entire presentation