International credit rating agency Fitch Ratings has affirmed Latvia’s credit rating at its current “A-” level, while maintaining a stable outlook, according to a statement from Fitch.
The agency highlights several key factors supporting Latvia’s current credit rating: a credible economic policy framework supported by membership in the European Union and the eurozone, relatively low public debt and debt servicing costs compared to peers with similar ratings, and moderate levels of private sector debt.
Factors that could lead to a downgrade in the outlook to negative include rising geopolitical risks, which could adversely impact the country’s economic growth as well as its fiscal and external financial positions.
Conversely, the outlook could be upgraded to positive if Latvia’s public debt burden relative to GDP declines—potentially through fiscal consolidation—or if geopolitical tensions ease, thus reducing the risk of external shocks to the Latvian economy.
Fitch’s previous assessment of Latvia’s credit rating was published on the 15th of November 2024, when the agency affirmed the “A-” rating and revised the outlook from positive to stable.