Fitch Affirms Latvia’s Credit Rating at 'A-' With Stable Outlook

The credit rating agency Fitch reported that Latvia’s long-term foreign and local currency Issuer Default Ratings (IDRs) has been affirmed at ‘A-’ and the outlook on the ratings is stable.

WASHINGTON (Sputnik) — Latvia’s long-term foreign and local currency Issuer Default Ratings (IDRs) has been affirmed at ‘A-’ and the outlook on the ratings is stable, the credit rating agency Fitch said in a press release.

“Fitch estimates real GDP growth of 2.3 percent for 2015. This compares with the 'A' median growth rate of 2.9 percent,” Fitch stated on Friday. “The stable outlook reflects Fitch's assessment that upside and downside risks to the rating are currently balanced.”

Fitch explained that Latvia's rating is based on its favourable fiscal position as well as credible institutional and policy framework.

“The macroeconomic imbalances that arose in the late 2000s are diminishing,” Fitch added, noting that Latvia’s ratings are constrained by low income per capita and high external debt.

The agency predicts Latvia’s GDP will stand at about 3 percent in 2016-2017.

However, Fitch also pointed out that Latvia’s economy slowed down as a result of low export growth caused by a recession in Russia, which is Riga’s third-largest trading partner.