Lithuania's credit ratings updated
On Friday evening, international credit rating agency DBRS Morningstar reaffirmed ‘A (high)’ long-term debt rating with a stable outlook previously assigned to Lithuania. Another agency, Moody's Investment Service, announced the same evening that it had completed its periodic review of Lithuania's credit rating and provided an assessment of Lithuania's economic outlook.
The stable outlook reflects DBRS Morningstar’s view that Lithuania’s prudent fiscal policy and low general government debt levels mitigate the risk of a potential wider fiscal deficit amid challenging external conditions. The agency’s experts believe that the Government’s commitment to allocate 5% of GDP to defence is likely to put pressure on fiscal sustainability in the medium term, but expect Lithuania to continue to pursue policies consistent with European Union (EU) fiscal rules.
The credit rating is based on Lithuania’s membership of the EU and the euro area, strong political institutions and effective policymaking, as well as a good fiscal performance and low debt levels. According to the agency’s analysts, Lithuania’s economy is small and open, making it more vulnerable to external shocks, but on the other hand, the country’s export sector is large and strongly integrated into key regional supply chains.
DBRS Morningstar last changed Lithuania's long-term debt rating in November 2021 - from ‘A’ to ‘A (high)’ with a stable rating outlook. The agency's latest report can be found here.
The international credit rating agency Moody's completed its periodic review of the rating on 2 October. During the review, the appropriateness of the ratings was reassessed, taking into account the relevant methodology and recent developments.
In their report, Moody’s experts highlight Lithuania’s credit strengths as including a small, albeit growing, general government debt, as well as a tradition of fiscal prudence that will help it weather future shocks. The agency notes that Lithuania’s economic and fiscal performance is in line with their expectations. They forecast that Lithuania’s GDP will grow by 2.6 % this year and by 3.2 % in 2026.
Lithuania’s stable outlook reflects balanced risks, according to Moody’s analysts. While significant geopolitical risks remain, they are mitigated by the country’s NATO membership, the continued deployment of NATO forces in Lithuania, and growing defence capabilities. The stable outlook also reflects the agency’s expectations that economic growth will remain robust and fiscal stability will not weaken over the forecast period, despite rising defence spending.
Moody's last upgraded Lithuania's credit ratings in February 2021, when the long-term debt rating of A3 (positive outlook) granted in 2015 was upgraded to A2 (stable outlook). The full statement from the credit rating agency Moody's can be found here.
It should be noted that at the end of May this year, international credit rating agency S&P Global Ratings affirmed Lithuania’s previous long-term debt rating ‘A’, with a stable outlook. Lithuania’s rating was last reviewed by Standard & Poor’s agency’s analysts in May 2024, issuing ‘A’ (stable outlook) and leaving a valid ‘A-1’ short-term debt rating, and last December only published a report on Lithuania assessing the country’s economic outlook.
At the beginning of May, international credit rating agency Fitch Ratings confirmed rating ‘A’, with a stable outlook, granted to Lithuania. Lithuania’s credit ratings were last upgraded by this agency in January 2020, when the long-term debt rating was upgraded from ‘A-’ to ‘A’.
More information about Lithuanian credit ratings can be found here.
Additional information:
A credit rating is an indicator that provides investors (creditors) with concentrated information on the degree of ability of the borrower to meet its financial obligations. A high credit rating indicates a lower risk of default by the debtor/issuer and, accordingly, a lower cost of borrowing.
They use specific classifications and symbols to express credit ratings and determine the credit value for borrowing countries and companies by using standardised credit ratings.
Last updated: 15-10-2025
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