Fitch Ratings and DBRS Morningstar affirmed Lithuania's high credit rating with a stable outlook
On Friday, the international credit rating agency Fitch Ratings reaffirmed the long-term debt rating at ‘A’ previously assigned to Lithuania and left a stable outlook. The same credit rating – ‘A (high)’ with a stable outlook – was also assigned to our country by the DBRS Morningstar credit rating agency.
"In the context of the war, when the Lithuanian economy is facing challenges, the maintenance of a high credit rating and the affirmation of a stable outlook for Lithuania show that the Government pursues a responsible fiscal policy and adheres to sustainable long-term public finance management. Despite the shocks, the Lithuanian economy demonstrates resilience and the ability to adapt to the changing circumstances," says Minister of Finance Gintarė Skaistė.
According to Fitch Ratings experts, Lithuania's ‘A’ rating reflects the country's credible policy framework supported by EU and eurozone membership, moderate government debt, prudent fiscal policy and governance indicators that are above the median of 'A' category peers. According to the agency, Lithuania's economy is small and open, but the country's economy and public finances have been relatively resistant to the negative effects of the pandemic and the war in Ukraine.
DBRS Morningstar, which maintained the ‘A (high)’ credit rating with a stable outlook, says the outlook reflects an assessment that risks are balanced. The agency's decision was determined by Lithuania's membership in the eurozone, stable fiscal and macroeconomic policy, a moderate level of government debt and the resilient, export-oriented economy of our country. According to DBRS Morningstar, fiscal policies and relatively low public debt compared to other eurozone countries have allowed public authorities to mitigate the impact of high prices and ensure energy security.
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.
DBRS Morningstar last revised Lithuania's long-term debt rating in November 2021 – upgraded from 'A' to 'A (high)' with a stable rating outlook. The agency's latest report can be found here.
Last April, another international credit rating agency, Moody's Investment Service, affirmed Lithuania's long-term debt rating ‘A2’ (stable outlook) assigned in February 2021. S&P Global Ratings revised Lithuania's rating in December 2022, when it maintained ‘A+’ long-term debt rating assigned 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 providing investors (creditors) with concise information on the level of the debtor’s capacity to discharge its financial commitments. A high credit rating indicates a lower risk of the debtor’s (issuer’s) default, and, accordingly, a lower cost of borrowing.
Fitch Ratings is part of a group of influential credit rating agencies, including Moody's Investors Service andS&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.