20. june 2014

Latvian Rating Raised by Fitch on Positive Debt Dynamics

Latvia got its third credit upgrade in three weeks as Fitch Ratings bolstered its assessment, citing prospects for a decline in public debt relative to gross domestic product.

Fitch increased the score by one level to A-, the fourth-lowest investment rating, from BBB+, putting it on par with Malaysia and Poland. It assigned a stable outlook.

“Positive debt dynamics support Latvia’s rating,” Fitch analysts Kit Ling Yeung and Paul Rawkins said today in an e-mailed statement from London. “Latvia’s growth prospects are positive notwithstanding heightened geopolitical risk, which has had little spill-over effects to date.”

The move returns Latvia’s rating to where it was in the first half of 2007, before a recession wiped out more than a fifth of output and prompted the government to seek a bailout. The country’s debt was raised one step by Moody’s Investors Service on June 13 and by Standard & Poor’s on May 30, both citing economic growth, lower debt ratios and this year’s euro adoption.

Source: bloomberg.com

Investments for land and real estate in Latvia