Credit rating agency S&P Global affirmed Latvia long term foreign and local currency sovereign credit ratings at 'A-'
S&P Global ratings are supported by its sound fiscal policies, which have led to comparably low general government deficits and relatively low net government debt, as well as its track record of effective policymaking. The stable outlook reflects Latvia's potential for faster-than anticipated debt reduction over the next two years.
The ratings are constrained by comparatively low income levels, demographic challenges in the long term, and external vulnerabilities, the latter chiefly related to the structure of Latvia's financial sector. S&P Global could raise the ratings if incomes in Latvia converged further toward those of other Eurozone members and structural demographic challenges abated; or if Latvia's fiscal and external positions improve significantly.
S&P Global expect that Latvia's economy will expand by 3% in 2017, budget deficit will be 1.1%, but debt to GDP will decrease to 37.2 % in 2017 from 39.9 % in 2016.
The same decision from S&P Global was on November 25, 2016, when the agency affirmed its 'A-' long term foreign and local currency sovereign credit ratings with stable outlook.
Full press release in S&P Global homepage http://www.standardandpoors.com (registration required).