DBRS Morningstar affirms Lithuania's high credit rating with a stable outlook
On Friday evening, the international credit rating agency DBRS Morningstar reaffirmed the long-term borrowing rating at ‘A (high)’, stable outlook, previously assigned to Lithuania.
The stable outlook reflects DBRS Morningstar's view that Lithuania's prudent fiscal policy and low public debt levels mitigate the risk of a temporary increase in the fiscal deficit in a challenging macroeconomic and geopolitical environment.
The agency bases the credit rating on Lithuania's membership in the European Union (EU) and the euro area, strong political institutions and effective policymaking, good fiscal performance, and low debt levels. According to the analysts, Lithuania's economy is small and open, making it more vulnerable, but on the other hand, the country's export sector is large and strongly integrated into key regional supply chains. It is also expected that Lithuania's remaining low debt levels will provide some fiscal space to respond to potential challenges, if necessary.
DBRS Morningstar last changed Lithuania's long-term debt rating in November 2021, raising it from ‘A’ to ‘A (high)’ with a stable rating outlook. The agency's latest report can be found here.
The rating given to Lithuania in November last year – ‘A’ with a stable outlook – was also affirmed by another international credit rating agency, Fitch Ratings. Meanwhile, S&P Global Ratings published a report on Lithuania in December last year, in which it assessed the country's economic prospects. The last time analysts of Standard & Poor's agency reviewed Lithuania's rating was in May 2024, setting it at ‘A’ (stable outlook) and leaving the ‘A-1’ short-term debt rating in effect.
Last November, another international agency, Moody's Investment Service, conducted a periodic review of Lithuania's credit rating. Analysts from this agency assessed Lithuania's situation as stable, therefore, a decision was made to leave the country's current long-term debt rating of ‘A2’ (stable outlook) unchanged and to publish a report on Lithuania, assessing the country's economic prospects.
More information on Lithuania’s credit ratings is available here.
Additional information:
A credit rating is an indicator that provides investors/creditors with consolidated information on the level of the borrower’s ability to meet its financial obligations. A high credit rating indicates a lower risk of default of the borrower/issuer and, accordingly, lower borrowing costs.
For credit ratings they use particular grades and symbols and set a credit value to borrowing countries and companies by using standardized credit ratings.
Last updated: 18-04-2025
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