Morningstar DBRS affirms Lithuania’s credit rating and outlook
On Friday evening, the international credit rating agency Morningstar DBRS reaffirmed Lithuania’s long-term credit rating of "A (high)" with a stable outlook.
Morningstar DBRS bases its stable outlook for Lithuania’s credit rating on robust economic growth, responsible fiscal policy, and a moderate level of public debt. These factors help offset risks associated with the widening budget deficit expected in the coming years. According to the agency, Lithuania’s economy is growing steadily, with domestic consumption and investment remaining the primary drivers of growth. The International Monetary Fund projects that Lithuania’s real GDP will grow by 2.8% in 2026, 2.2% in 2027, and 2.6% in 2028.
Meanwhile, Lithuania’s credit rating is supported by a strong institutional and economic environment, membership in the EU, the euro area, and NATO, and responsible public finance management, though it is also constrained by several structural challenges. Analysts note that Lithuania’s economy is small and open, making it vulnerable to external shocks and geopolitical risks. Furthermore, labour productivity remains lower than in many euro area countries, and unfavourable demographic trends could hinder economic growth in the medium term.
Morningstar DBRS last changed Lithuania’s long-term credit rating in November 2021, upgrading it from "A" to "A (high)" with a stable outlook. The agency’s latest report can be found here.
In late May, another international credit rating agency, S&P Global Ratings, maintained Lithuania’s previously assigned long-term credit rating of "A" with a stable outlook.
In late April, following a positive assessment of Lithuania’s economic situation, the international credit rating agency Fitch Ratings upgraded the country’s credit rating from "A" to "A+" with a stable outlook—the first such upgrade in six years. This rating assigned by Fitch Ratings is currently the highest among the long-term credit ratings given to Lithuania by the three major agencies.
In mid-April, another international credit rating agency, Moody’s Investors Service, reaffirmed Lithuania’s long-term credit rating at ‘A2’ and maintained a stable outlook. Moody’s had last upgraded Lithuania’s credit ratings in February 2021, upgrading the long-term rating from ‘A3’ (positive outlook)—assigned in 2015—to ‘A2’ (stable outlook).
More information on Lithuania’s credit ratings can be found here.
Additional information:
A credit rating is an indicator that provides investors (creditors) with concise information regarding a borrower's ability to meet its financial obligations. A high credit rating indicates a lower risk of default by the borrower (issuer) and, consequently, a lower cost of borrowing.
Credit ratings are expressed using a specific classification and set of symbols; standardized credit ratings are used to assess the creditworthiness of borrowing states and companies.