S&P affirms Lithuania

Standard & Poor's said that it affirmed the BBB long-term and A-3 short-term sovereign credit ratings on Lithuania.

The stable outlook and the A transfer and convertibility assessment are unchanged.

The ratings on Lithuania reflect the proven commitment across political parties to support and implement budgetary and structural policies that anchor the currency-board regime and enhance the country's flexible labor and goods markets, the agency said.

Lithuania's ratings are constrained by the more limited fiscal and especially monetary policy buffers that are a function of the government's commitment to the currency board, the country's still-significant external burden and its economic structure, which before 2009 was disproportionately oriented toward domestic demand and non-tradables, the agency added.

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