S&P Global af­firms Latvia’s credit rat­ing at «A-»

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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.

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