30. may 2014

Standard & Poor’s increased Latvian credit rating

Standard&Poor’s increased Latvian credit rating from BBB+ to A- with a stable outlook. Andris Vilks, the Economy Minister of Latvia, believes that the fact that Latvia is among A-rated countries means international recognition; and the state will have to comply with high standards and deal with significant challenges in the future.

Standard&Poor’s analysts explained their decision by the steady and sustainable development of the Latvian economy, foreign economic parameters that turned out to be better than expected, and reasonable and cautious fiscal policy. The agency noted that the budgetary deficit reduced as well.

The agency’s expert stipulated that in 2013, the Latvian economy grew by 4.1%, demonstrating the most dynamic growth in the EU. According to Standard&Poor’s, in 2014 the Latvian GDP will grow by 3.7%, and in 2015-2017, approximately by 4.3%.

The forecast for the development of the Latvian economy is stable as positive changes reduced certain external risks. This forecast means that the experts do not see any reason to change the rating within the following two years, it will grow if the foreign economic parameters improve, however, Standard&Poor’s warn that considerable changes in the fiscal policy, the considerable gap in the balance or higher risks relating to non-resident deposits will result in a lower rating.

Source: db.lv

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