S&P: Lithuania notes BBB

Standard & Poor's said it assigned a BBB rating to the $750 million of 10-year notes issued on March 2 by the Republic of Lithuania.

The rating is equalized with the long-term sovereign rating on Lithuania, S&P said.

The ratings reflect the government's successful fiscal consolidation of 12% of GDP in the 2008 through 2010 budgets in the face of a severe economic contraction, the agency said.

In 2009, the widening social security deficit was the main factor weighing on public finances, S&P said.

While the economy has grown by 1.3% in 2010, the recovery is largely statistical as demonstrated by Lithuania's high unemployment and a rise in net emigration, the agency said.

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