Economics, Good for Business, Latvia, Rating

International Internet Magazine. Baltic States news & analytics Monday, 18.11.2019, 09:29

Fitch affirms Latvia’s rating at 'A-'; outlook stable

BC, Riga, 14.10.2019.Print version
Fitch Ratings agency has affirmed Latvia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A-' with a Stable Outlook, the ratings agency informs.

Fitch cited Latvia’s moderate budget deficit and government debt level, as well as institutional resilience ensured by membership in the EU and the euro area as the main factors supporting Latvia’s high credit rating. 

 

Residents’ low income, as well as a higher instability of gross domestic product and external debt as compared to other countries with similar credit rating were mentioned as Latvia’s main issues.


The ratings agency forecast Latvia’s GDP growth at 2.6% for 2019-2021, demonstrating a slower growth than the average estimate of 2.8% due to weaker investments and export growth, lower demand and slower apsorbtion of the EU funds.


Fitch also expects Nordic banks to keep playing an important role in Latvia, while developments in the non-resident banking segment are not expected to have a significant effect on the banking sector.

 






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