After a six-year hiatus, Fitch Ratings upgrades Lithuania

Date

2020 02 03

Rating
0
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Following a favourable assessment of Lithuania's public finance and economic situation, Fitch Ratings, the international credit rating agency, has upgraded Lithuania’s long-term and short-term Foreign-Currency Issuer Default Ratings from A- to A and from F1 to F1+, respectively. The agency's long-term credit rating is stable.

‘This is another step upward for Lithuania which indicates trust in our state. The upgraded credit ratings shows that we are treated as a reliable partner who manages public finances responsibly. Also, this decision provides real chances for a further decline in the country's borrowing cost,’ Finance Minister Vilius Šapoka says.

The agency's expert decision was driven by the solid real GDP growth, falling government debt level and debt servicing costs. It was also influenced by the fiscal surpluses recorded for several consecutive years and widening current account surpluses, the contained inflation during the period of high growth and positive net migration. According to the agency, prudent fiscal policy in Lithuania and Eurozone membership is likely to further enhance macroeconomic stability and the resilience of the economy to external shocks.

The last time the agency upgraded our Lithuania's credit ratings was in June 2014.

Currently, long-term debt ratings assigned by other international credit rating agencies are as follows: Moody's A3 (positive outlook), S&P Global Ratings A (stable outlook), and DBRS Morningstar A (positive outlook).

The rating action commentary can be found here.