S&P rates Lithuania bond BBB

Standard & Poor's said it assigned BBB and A-2 ratings to the euro medium-term note program established Jan. 15 by the Republic of Lithuania.

The agency said it equalized the ratings on the program and the €500 million bond issuance with the long-term sovereign credit rating on Lithuania.

The ratings balance the view of the country's political commitment to achieving sustainable public finances against the relatively limited monetary policy tools that stem from its currency board arrangement, S&P said.

Following the 2008 financial crisis, the government has taken steps to consolidate public finances, the agency said.

The agency said it believes it will pursue tight fiscal policies this year, given its desire to enter the eurozone by 2015.

The government also has a strong track record of using available E.U. funds with absorption rates among the highest in Europe, Fitch said.

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