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Japanese credit rating agency R&I upgraded Latvia`s credit rating

Created : 15.01.2018.
On Monday, January 15, Japanese credit rating agency R&I upgraded Latvia`s credit rating to A- from BBB+ and assigned stable rating outlook.

R&I note that upgrade for Latvia`s credit rating reflects government implemented fiscal policies, stability of the financial and banking systems and economic development. Moreover, despite geopolitical risks, slow absorption of European Union funds and higher wages, Latvia will continue to show stable economic growth. 

Looking back to 2017, we can conclude that Latvia's economic growth has increased substantially, reaching the strongest growth over the last six years. In 2018, strength for the national economy will ensure implementation of the Tax Reform, which is a historic step towards to a stronger and more competitive state. So far, the 3 major credit rating agencies have evaluated Latvia in A rating group, but with Japanese rating agencies R&I rating upgrade for Latvia, we are pleased that Latvia is a full-fledged A rating country, says Finance Minister Dana Reizniece-Ozola.

R&I outline that over the medium-term the demography shifts shall draw the attention as the population of Latvia continue to decline due to a negative natural growth and working-age population emigration to other European Union member states. The shrinking population could have a weigh on social security and healthcare spending and also hamper economic growth.

R&I positively evaluate the implemented tax reform, although reminds that actual results of the reform will be seen only after a while.

The previous credit rating agencies announcement was on October 27, 2017 when international rating agency Fitch affirmed Latvian credit rating for long-term local and foreign currency at A- with stable outlook.

Full press release in R&I homepage.