S&P Global affirms Latvia’s credit rating at «A-»
On Thursday, 22 February, S&P Global reaffirmed Latvia’s credit rating on the «A-» level, retaining a positive outlook for the future, as BNN was informed by the State Treasury.
«The assessment performed by S&P Global represents a non-routine evaluation associated with the announcement published by US Department of Treasury about ABLV Bank and the restrictions imposed by the European Central Bank and Latvia’s Finance and Capital Market Commission on the bank’s operations,» explains the State Treasury.
In its report, S&P Global notes that the direct fiscal risk for Latvia associated with ABLV Bank is limited and insignificant for Latvia’s financial capabilities.
S&P Global notes the current situation in Latvia will not create any negative influence on Latvia’s banking sector.
The credit rating agency notes that although the current situation could potentially create problems for foreign banks working in the country, it will have limited influence n Latvia’s national economy without having an effect on Latvia’s financial stability.
S&P Global welcomes the government’s fiscal policy, sustainable growth of Latvia’s economy, as well as predicted growth of 3% in the next four years. According to S&P Global assessment, Latvia’s economic growth will largely depend on strong domestic consumption, influx of EU funding, and supportive environment for external trade.