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“We are pleased that these international credit rating agencies have assessed the resistance of the Lithuanian economy to the impact and readiness to overcome the COVID-19 pandemic. This is an important assessment of the confidence in the policy followed by the Government of Lithuania. Of course, this is also the responsibility to continue to ensure a sustainable financial policy, ”says Finance Minister Gintarė Skaistė.
The decision of Moody’s experts to upgrade Lithuania’s rating was determined by two main reasons. In particular, the positive medium-term prospects for Lithuania’s economic growth, driven by increased investment with EU funds, productivity-oriented structural reforms, and improved migration and demographic trends. Furthermore, the agency expects that, despite the impact of the crisis, Lithuania’s debt burden will remain lower than that of most countries with the same credit rating (A2), and the fiscal position will be further strengthened. more because of the low costs of debt service and the decrease in debt in foreign currency.
S&P Global Ratings confirmed the high long-term debt rating by welcoming expectations of a rapid recovery for the country after the pandemic and an improved external balance of payments. The monetary policy followed by the European Central Bank has also been taken into account, which will make it easier for countries to endure a temporary deterioration in their fiscal positions in the coming years.
You can find the report from the rating agency Moody’s here, or „S&P Global Ratings“ – here.
The international credit rating agency Fitch Ratings has assigned Lithuania a long-term debt rating of A (stable outlook) and DBRS Morningstar of A (stable outlook).
Credit rating is an indicator that provides investors (creditors) with concentrated information on the level of ability of the borrower to meet its financial obligations. A high credit rating indicates a lower risk of default by the borrower (issuer) and a correspondingly lower cost of borrowing.
Moody’s Investor Service and S&P Global Ratings belong to a group of influential credit rating agencies like Fitch Ratings. They use certain classifications and symbols to express credit ratings and determine the value of credit for borrowing countries and companies that use standardized credit ratings.
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