Fitch Ratings affirmed credit rating assigned to Lithuania earlier
On Friday, the international credit rating agency Fitch Ratings reaffirmed the long-term credit rating ‘A’ previously assigned to Lithuania and left a stable outlook.
"Maintaining a high credit rating and a stable outlook once again confirms that, despite the complex geopolitical environment, the Lithuanian economy demonstrates resilience, and public finances are managed in accordance with a sustainable long-term direction," Minister of Finance Gintarė Skaistė states.
According to the agency's experts, Lithuania's rating ‘A’ reflects the country's reliable political system, based on membership in the European Union and the euro area, a low level of public debt, a prudent fiscal policy and governance indicators that exceed the median of countries with the same rating.
This year's growth of the Lithuanian economy has so far exceeded the expectations of Fitch Ratings, so the agency increases the real GDP growth forecast from 2 % up to 2.3 %. According to analysts, the country's economic recovery has been largely driven by rising household consumption, supported by high consumer expectations and public investment, including in areas such as infrastructure and defence.
It is emphasized that although Lithuania faces increased geopolitical tension, the risks are reduced by NATO membership and Germany's commitment to deploy a brigade in our country by 2027.
Fitch Ratings last upgraded Lithuania's credit ratings in January 2020, when the long-term debt rating was upgraded from ‘A-‘ to ‘A’. The agency's latest commentary can be found here.
In May this year, another credit rating agency, S&P Global Ratings, reviewed Lithuania's rating, setting it at ‘A’ (stable outlook) and leaving the ‘A-1’ short-term borrowing rating in effect. In October, Lithuania's rating – ‘A (high)’ with a stable outlook - was affirmed for our country by the DBRS Morningstar credit rating agency, and Moody's Investment Service performed a periodic review of Lithuania's credit rating. The analysts of this agency assessed the situation in Lithuania as stable, therefore a decision was made not to change the long-term debt rating of ‘A2’ (stable outlook) assigned to the country at the moment and only to publish a report on Lithuania, assessing the prospects of the country's economy.
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.
Fitch Ratings is part of a group of influential credit rating agencies such as Moody’s Investors Service and S&P Global Ratings. 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: 25-11-2024
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