S&P lowers Lithuania outlook to negative

Standard & Poor's said it revised its outlook on the Republic of Lithuania to negative from stable, due to a pick up in domestic demand in the first part of 2007, increasing the likelihood of a hard landing for the country's economy.

At the same time, S&P said it affirmed its long-term A and its short-term A-1 sovereign credit ratings on the republic.

The high annual growth rate of more than 7% in the past few years will raise Lithuania's comparatively low GDP per capita, estimated at $11,000 in 2007, the agency said.

The ratings are constrained by limited external liquidity, S&P added.

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