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Standard & Poor's raised short-term credit ratings on Lithuania

Date

2012 08 31

Rating
0

Vilnius, August 31, 2012. Standard & Poor's Ratings Services raised Lithuania‘s sovereign short-term foreign and local currency credit ratings to 'A-2' from 'A-3' today. At the same time, the agency affirmed its 'BBB' long-term foreign and local currency sovereign credit ratings on Lithuania.

The ratings on Lithuania balance our assessment of a proven political commitment to sound economic and fiscal policies, which anchors the currency board regime, against its more-limited monetary and fiscal policy flexibility - a characteristic of the government's monetary regime - and its moderate, although declining, external indebtedness, Standard & Poor's said.

Rating agency admits, that Lithuanian government has made significant progress in consolidating the public finances and mentions the possibility to increase the long term rating if the external debt burden continues to decline and investment brings greater economic diversification.