Fitch Ratings affirms a credit rating issued to Lithuania in the past
On Friday, the international credit rating agency Fitch Ratings reaffirmed the long-term credit rating “A” issued to Lithuania in the past and left a stable outlook.
According to Fitch Ratings experts, Lithuania’s rating “A” reflects the country’s sound political system based on membership in the European Union and the euro area, low government debt level, prudent fiscal policy and governance indicators above the median of the countries with the same rating.
The agency’s experts in their report underline Lithuania’s economic recovery. This year, real GDP growth is expected to be 2 %, driven mainly by an increase in household consumption. National economic growth of 3.1 % is projected in 2025, which will be strongly influenced by the EU investments.
Fitch Ratings also highlights the rapid decline in inflation in Lithuania (in April inflation reached 0.4 %) and a resilient labour market. Despite increased unemployment at the end of 2023, it remains at historically low levels.
It is stressed that although Lithuania is facing geopolitical tensions over its border with Kaliningrad region and Belarus, NATO membership and Germany’s commitment to deploy a brigade in our country till 2027 reduce the risk.
Lithuania’s credit ratings were last upgraded by Fitch Ratings in January 2020, when the long-term credit rating was upgraded from “A-” to “A”. The latest report from the agency can be found here.
Another international credit rating agency Moody’s Investment Service reaffirmed in April 2021 the long-term credit rating “A2” (stable outlook) issued to Lithuania in February 2021. The rating– “A (high)” with a stable outlook issued to Lithuania in the past – was affirmed to our country by the credit rating agencyDBRS Morningstara month ago. While S&P Global Ratings last reviewed Lithuania’s rating in December 2022, when it left the long-term credit rating “A+” issued in February 2020, changing the outlook from stable to negative.
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. They use certain classification and symbols to express credit ratings and to determine the credit value for borrowing countries and companies by using standardised credit ratings.
Last updated: 23-05-2024
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