Fitch rates Lithuania bonds BBB

Fitch Ratings said it assigned a BBB rating to the Republic of Lithuania's $750 million bond maturing in September 2017.

The long-term foreign-currency issuer default rating is BBB.

The outlook is stable.

The country's sizable financing requirement reflects its large budget deficit, Fitch said, which remains despite budgetary consolidation last year worth 8% of GDP, plus a further 4% of GDP of spending cuts budgeted for this year.

This reflects the depth of the recession in the country (a 14.8% contraction in GDP last year) as well as large increases in social expenditure spending through the boom years, the agency noted.

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