Moody’s reaffirmed Lithuania’s credit rating
On Friday evening, the international credit rating agency Moody’s Investment Service reaffirmed the ‘A2’ long-term credit rating with a stable outlook previously granted to Lithuania.
The approval of Lithuania’s ‘A2’ credit rating reflects the country’s experience with active economic policies and fiscal discipline. According to Moody’s experts, Lithuania is sufficiently resilient to shocks, as demonstrated again in recent years, including a significant reduction in economic ties with russia. Public debt was below 40% of GDP in 2025, and debt service options are very good.
According to Moody’s analysts, the strong economic situation supports the ‘A2’ rating and reflects strong long-term growth and a high level of income per capita. This is due to structural changes, such as a shift towards higher productivity services, in particular information technology and business services, as well as a gradual shift towards higher-tech manufacturing. The agency forecasts real GDP growth at 3.0% in 2026, significantly higher than the expected long-term growth rate of 2.5%.
However, these economic advantages, according to Moody’s, are partly offset by the small size of the domestic market and the extreme openness that keeps Lithuania vulnerable to fluctuations in external demand. In addition, unfavourable demographic trends are likely to reduce labour supply and slow down potential growth in the medium and long term, despite mitigating factors such as productivity growth, increasing labour market participation rates and positive net migration.
A stable outlook indicates that ‘A2’ rating risks are currently balanced. Moody’s analysts believe that geopolitical risks for Lithuania will remain elevated, but they are mitigated by the country’s membership in NATO, the multinational NATO Battle Group deployed in Lithuania and the Government’s focus on strengthening defence capabilities. The stable outlook also reflects the agency’s expectation that economic growth will remain robust and the fiscal position resilient.
Moody’s last upgrade of Lithuania’s credit ratings was in February 2021, when the ‘A3’ (positive outlook) long-term credit rating issued in 2015 was upgraded to ‘A2’ (stable outlook). The latest credit rating report is available here.
A week ago, the international credit rating agency Morningstar DBRS reaffirmed the ‘A (high)’ long-term credit rating previously granted to Lithuania with a stable outlook. Morningstar DBRS last re-ranked Lithuania’s long-term credit rating in November 2021 from ‘A’ to ‘A (high)’ with a stable rating outlook.
Lithuania’s ‘A’ rating of November last year, with a stable outlook, was also affirmed by S&P Global Ratings’ credit rating agency. Analysts of this agency assessed the situation in Lithuania as stable, therefore, a decision was taken not to change the country’s ‘A’ credit rating assigned in 2024 (stable outlook), while maintaining the ‘A-1’ short-term credit rating and only publishing a report on Lithuania, assessing the country’s economic outlook.
The credit rating agency Fitch Ratings affirmed the ‘A’ credit rating of Lithuania with a stable outlook at the end of October last year. The agency last improved Lithuania’s credit ratings in January 2020, when the long-term credit rating was upgraded from ‘A-’ to ‘A’.
More information about Lithuania's 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: 20-04-2026
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