Moody’s upgrades Lithuania

Moody’s Investors Service said it upgraded Lithuania’s long-term issuer and senior unsecured ratings to A2 from A3. Concurrently, the agency changed the outlook to stable from positive.

In explaining the upgrade, Moody’s cited Lithuania’s strong medium-term growth prospects, supported by increased E.U.-funded investment, structural reforms to raise productivity growth and improved migration and demographic trends

The agency also noted Lithuania’s debt burden will remain lower than that of most A2-rated peers, notwithstanding the crisis’ effect, with fiscal strength supported by strong debt affordability metrics and a reduction of foreign-currency debt.

“The stable outlook reflects our expectation that the Lithuanian economy will remain relatively resilient to the impact of the coronavirus and will return to robust rates of growth in 2021 and beyond,” Moody’s said in a press release.

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