International rating agency Fitch has raised Latvia's credit rating for long-term liabilities from "BBB+" to "A-" with stable future outlook, the Latvian Ministry of Finance says.
"This is the third credit rating upgrade for Latvia within a month, which means high appreciation of the achievements of the country and the nation," Latvian Minister of Finance Andris Vilks commented
"Fitch explains the rating increase by Latvia's positive economic growth, good state financial indicators and achievements in the public finance environment," .
Fitch estimates Latvia's gross domestic product growth to reach 3.6 percent in 2014 and 3.8 percent in 2015. The budget deficit is estimated at 0.9 percent of GDP until the end of 2016. Further economic growth will be facilitated by the domestic demand, private consumption and recovery of investment activity
The agency indicates that the rating is sustained by the positive dynamics of the country. The state debt level is under the average "A" rating group, and the agency forecasts its decline in the future as well.
The banking sector has been evaluated as stable. The accession to the eurozone has reduced foreign exchange rate risks and given Latvian banks access to European Central Bank liquidity facilities.
Last time Latvia was rated "A-" was in 2007.