Japanese R&I upgrades Latvia’s credit rating to A-
Japanese Rating and Investment Information, Inc. (R&I) has announced its decision to upgrade Latvia’s rating from BBB+ to Awith a stable outlook, as reported by Latvian State Treasury.
As noted by Latvian Finance Minister Dana Reizniece-Ozola, looking back at 2017, Latvia’s economic growth has become faster. According to her, the tax reform assisted with strengthening growth of the national economy. She called it a historic step towards a stronger and more competitive Latvian state.
«Three of the world’s largest credit rating agencies have put Latvia in the A group so far. With the upgrade by Japanese R&I we can be satisfied with Latvia as a member of the A group,» said Dana Reizniece-Ozola.
R&I emphasizes that upgrade of the credit rating benefited from the government’s fiscal policy, stable state finance and banking system, as well as economic development. Latvia maintains a responsible policy and demonstrates stable economic growth in spite of geopolitical risks and relatively slow realization of EU funds and growing labour costs.
The credit agency welcomes the much contested tax reform, saying that benefits will become clear in time.
Also R&I points towards demographic changes – Latvia’s population keeps reducing because of negative natural birthrates and continued departure of labour force to other European Union member states. The agency notes that continued decline of the population will only make economic development even more complicated.