Fitch Ratings reaffirms Lithuania’s credit rating
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.
According to Fitch Ratings analysts, Lithuania’s A rating reflects a sound domestic political system based on membership of the European Union and the euro area, low government debt, prudent financial management and governance indicators above the median for countries with the same rating.
Experts of the credit rating agency note that although Lithuania is facing geopolitical tensions due to its borders with Kaliningrad and Belarus, the risk is mitigated by NATO membership, Germany's commitment to deploy a brigade in our country by 2027 and the Government's plan to form a heavily equipped army division by 2030.
Fitch projects that due to increasing defence spending, a fiscal deficit will be 2.8% in 2025 and 2.6% in 2026, broadly in line with the median of ‘A’ rated countries, and general government debt is to increase up to 46.4% in 2026, but below the median of ‘A’ rated countries (57.2%).
The agency's analysts expect defence spending to rise to 3.9% of GDP this year, up to 5.5% of GDP next year, maintaining a high level also in the following years. Analysts note that Lithuania has experienced one of the most significant increases in real military spending among NATO member states since 2014.
Fitch Ratings last upgraded Lithuania’s credit ratings in January 2020, when its long-term credit rating was upgraded from ‘A-’ to ‘A’. The agency's latest report is available here.
The rating assigned to Lithuania in mid-April – ‘A (high)’ with a stable outlook – was affirmed by the international credit rating agency DBRS Morningstar. Meanwhile, S&P Global Ratings published a report on Lithuania last December assessing the country’s economic outlook. Last time Standard & Poor’s analysts reviewed Lithuania’s rating in May 2024, assigning the ‘A’ (stable outlook) and maintaining the ‘A-1’ short-term rating.
Moody’s Investment Service last upgraded Lithuania’s credit ratings in February 2021, when its long-term A3 rating (positive outlook) assigned in 2015 was upgraded to A2 (stable outlook). In mid-April, Moody’s published a report on Lithuania, with the agency’s analysts assessing Lithuania’s situation as stable, which led to a decision not to change its current rating.
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 three major 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: 07-05-2025
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