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Friday, 26.04.2024, 02:22
Fitch affirms Lithuania's credit rating at A-
"Lithuania's ratings are supported by institutional strengths and a policy framework that come with eurozone membership, as well as its government's stable fiscal finances," Fitch said in a press release.
"However, the ratings remain constrained by the country's weaker external finances and lower per capita income than similar 'A' rated peers," it said.
Fitch forecasts that Lithuania's GDP will grow by 2.9% in 2016, mostly driven by domestic consumption.
"Economic growth will be predominately domestic led, with household consumption the main driver as supportive fiscal policies and robust growth in real wages will help boost levels of disposable income," the agency said.
"Positive contributions to growth are also expected to come from investment, although at a slower pace than in 2015 as use of EU funds temporarily slows due to the start of a new program period (2014-2020)," it said.
Fitch expects that the prolonged recession in Russia and its embargo on certain EU food products will continue to have a negative impact on Lithuania's export and transportation sectors.
The agency upgraded the country's long-term rating to A-, from BBB+, in June 2014.
Standard & Poor's last week affirmed Lithuania's long-term credit rating at A-, with a stable outlook. Lithuania is rated at A3 by Moody's.