20-04-2024

Rating agency Moody’s affirmed Lithuania’s credit rating granted before

The international credit rating agency Moody’s Investment Service affirmed the A2 long-term credit rating with a stable outlook granted to Lithuania two years ago.

This decision by Moody’s experts was determined by several key factors: strong state of the country’s public finances, rational management of the budget and public debt, and significant progress in strengthening Lithuania’s energy security.

It is emphasized that although geopolitical tensions have increased in the region, Lithuania’s membership of NATO and the EU provides security guarantees, as well as Lithuania's economic and fiscal resilience to the possible impact of the war by russia in Ukraine is also positively assessed.

Moody’s analysts project that despite the increased budget expenditure, particularly related to defence and energy security, public finances will remain strong for at least three years, as a result of a stable economy, the country is finding new resources to finance additional permanent expenditure.

Moody’s last upgraded Lithuania’s credit rating in February 2021, when the A3 (positive outlook) long-term credit rating granted in 2015 was upgraded to A2 (stable outlook). The same rating was affirmed in April 2022.

The same credit rating – “A (high)” with a stable outlook – was also affirmed to our country by another DBRS Morningstar credit rating agency yesterday.

The full report of the credit rating agency Moody’s Investment Service can be found here.

More information about the Lithuanian credit ratings can be found here.

Additional information:

A credit rating is an indicator providing investors (creditors) with concise information on the potential 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.

Moody's Investor Service belongs to the influential group of credit rating agencies, such as Fitch Ratings and S&P Global Ratings. For credit ratings the companies use particular grades and symbols, and set a credit value to borrowing countries and companies by using standardized credit ratings.