Fitch confirms Latvia’s credit rating at A- Level / Day

As the most important factors that maintain Latvia’s credit rating at the current level, the Agency mentions a reliable framework for economic policy supported by membership in the European Union (EU) and the eurozone, still low levels of public debt and debt service costs compared to similar credit rating countries and moderate private sector debt.

Among the factors that cause the Latvian credit rating to be reduced to negative, Fitch mentions the exacerbation of geopolitical risks, which can adversely affect the country’s economic growth as well as the state and external financial position.

On the other hand, as the factors that, the future assessment of Latvia’s credit rating could be increased to positive, Fitch indicates a reduction in public debt relative to gross domestic product, which could be facilitated, for example, fiscal consolidation. Similarly, the future assessment of the credit rating could be increased if geopolitical tensions were reduced, which could limit the possible impact of external shocks on Latvia.

Fitch published the previous Latvian credit rating assessment on November 15, 2024, confirming the rating at the « A- » level and lowering its future assessment from positive to stable.