Moody’s keeps Latvia`s credit rating level at A3 with stable outlook

On Friday, July 26, 2024, Moody’s Ratings (Moody's) has completed a periodic review of the ratings of Latvia in the context of the relevant methodology and recent developments, keeping Latvia`s credit rating unchanged at A3 level with stable outlook.

According to Moody`s view, Latvia's current credit rating is supported by its strong public finances and solid institutions. These are set against challenges related to the country’s exposure to external shocks, including geopolitical risk, which, however, is mitigated by Latvia's NATO membership. Stable outlook reflects balanced risks at Latvia`s current credit rating level.

Moody`s mentions that institutions and governance strength reflects Latvia`s capacity to tackle major policy challenges, as exemplified by the very significant macroeconomic adjustment during the twin pandemic and energy crisis shocks. Moody`s assessment of Latvia's economic strength reflects the country’s solid trend growth and relatively high wealth per capita, with a small but flexible economy. The agency`s evaluation of fiscal strength reflects a moderate debt burden and strong debt affordability, but also a relatively high share of debt related to state-owned enterprises.

The full press release is available on the Moody`s Investors Service website https://www.moodys.com (registration necessary).

Source: Treasury Republic of Latvia (www.kase.gov.lv)
Photo: REUTERS/SCANPIX/LETA