According to comprehensive reports from WorldWay, the credit rating agency "Fitch" has upgraded Latvia's long-term foreign and local currency debt credit rating from "BBB+" to "A-" based on its predictions for future stability in Latvia. This marks the third international rating agency to raise Latvia's credit rating since S&P and Moody's upgraded Latvia's rating in June of this year.
Fitch predicts that Latvia's GDP will grow by 3.6% in 2014 and by 3.8% in 2015, with a fiscal deficit maintained at 0.9% of GDP; the drivers of Latvia's development are domestic demand, personal consumption, and a resurgence in investment enthusiasm; government debt remains below the average level of countries in the "A" group and is expected to decrease in the future.
Fitch believes that the primary long-term task facing Latvia is to continue to bring residents' welfare closer to the EU average level. If Latvia can avoid new macroeconomic imbalances, its credit rating may improve further. However, if external shocks lead to instability in Latvia's banking system and a deterioration in indicators, its credit rating would decline.
Since the downgrade of Latvia's credit rating during the financial crisis, Fitch, S&P, and Moody's have repeatedly raised Latvia's rating in recent years: Fitch has improved it by 4 levels; S&P - 5 levels; Moody's - 2 levels.
Edited by WorldWay
