Fitch Upgraded Lithuania’s Borrowing Rating Perspective
Vilnius, 4 April 2014. International rating agency Fitch has positively assessed consistent steps of Lithuania in pursuit of sustainability of public finances, membership of the euro area and upgraded long-term borrowing rating perspective of our country from stable to positive.
The decision of the agency was based on expectations that our country will adopt the euro next year, on rapid growth of Lithuanian economy, consistently reduced public deficit.
Fitch in its report states that Lithuania successfully continues the works in order to meet the Maastricht criteria. The agency expects that the European Commission together with the European Central Bank will positively assess the efforts of our country. According to Fitch, the euro adoption in Lithuania would minimize the risk of local banking sector related to the fulfillment of commitments and assets denominated in foreign currency, would eliminate the foreign exchange risk related to state foreign debt.
The agency by upgrading Lithuania’s credit rating perspective gave a positive signal to investors and this makes preconditions for decrease in government borrowing cost.
The rating itself (BBB+) remained pro tempore unchanged. Among the reasons due to which Fitch would upgrade the rating, the agency names expectations that Lithuania starting from the year 2015 will become the member of the euro area, the economy will grow at more accelerated pace than envisaged, the country will further follow responsible public finance policy which will make conditions also for decrease in the State debt ratio to GDP.
Credit ratings of Estonia and Latvia have been upgraded 6–7 months before the euro adoption in these countries.
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Atnaujinimo data: 2024-01-04
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