While a lot of countries got downgraded in the face of the pandemic, international ratings agency Fitch Ratings affirmed Lithuania’s long term debt rating at ‘A’ with a stable outlook which were assigned in January 2020.
‘This is another confirmation that in the international forum Lithuania is considered as a reliable and accountable country, which makes trustworthy decisions. In order for us to keep this high position, we must prepare a safe budget and return our debt to downward trend as soon as possible,’ Finance Minister Vilius Šapoka says.
The stable outlook in this exceptional period reflects a degree of economic resilience to the COVID-19 pandemic owing to an improvement in external finances, a stable banking sector and a credible fiscal consolidation policy. The agency’s expert decision was driven by the strong institutional capacity and reliable political system, supported by the membership in the European Union. Track record of fiscal surplus inspires confidence in Government institutions continuing to follow prudent fiscal policies and Government debt levels returning to downward path.
The last time the agency upgraded Lithuania’s credit ratings was in January 2020, when long-term Foreign-Currency Issuer Default Ratings were upgraded from ‘A-‘ to ‘A’.
Currently, long-term debt ratings assigned by other international credit rating agencies are as follows: S&P Global Ratings ‘A+’ (stable outlook), Moody’s ‘A3’ (positive outlook), and DBRS Morningstar ‘A’ (stable outlook).
Since the beginning of March Fitch Ratings downgraded United Kingdom, San Marino, Italy and Slovakia. Rating outlooks of Belgium, Latvia, Romania, France, North Macedonia and Iceland were changed from stable to negative.
The rating action commentary can be found here.