Fitch international rating agency has announced that Latvia’s long-term credit rating for bonds in local and foreign currency will be maintained at «A-» with a stable outlook.
«A stable position in this rating group a proof for investors that we have worked hard in order to create an investment-friendly environment in our country,» – comments Finance Minister Janis Reirs.
In spite of influence from geopolitical risks, the agency predicts growth for Latvia’s economy. The weaker indexes of the foreign sector will be compensated by the rise of domestic consumption, the agency predicts. Fitch predicts Latvia’s economy will grow 2.3% in 2015 and 3% in 2016.
Fitch gave a positive score to Latvia’s financial state and stability of the country’s banking sector. The level of budget deficit and external debt in Latvia is lower than that of other countries in this rating group.
The rise of Latvia’s credit rating is currently limited by a relatively high level of the country’s external debt. It is noted, however, that this level continues to reduce year after year.
The stable future outlook means the current risks are equally balanced in the agency’s opinion. The score could improve even more if Latvia’s economy continues to grow and as long as there aren’t any new signs of macroeconomic instability. Decline of the country’s debt level could also contribute to the improvement of Latvia’s score.