Fitch cuts Latvia to BBB+

Fitch Ratings said it downgraded the Republic of Latvia's foreign-currency issuer default rating to BBB+ from A-, along with its local-currency issuer default rating to A- from A and its country ceiling to A+ from AA-. Its short-term foreign-currency is affirmed at F2.

The outlook is stable.

The Latvian economy is severely overheating and Fitch considers the policy reaction of the government to be insufficient to restore the economy to a sustainable growth path, Fitch said.

With euro adoption delayed until at least 2013, the support that potential European Union membership provides to Latvia's over-stretched external finances has diminished, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.