Latvia's finance minister said the country would come out of the crisis stronger than before.
RIGA -- International ratings agency Fitch has raised Latvia's outlook to stable, one step below investment grade, from negative as the country's economy continues its rebound from the EU's worst recession.
"Financial and economic stabilisation in Latvia, and an improvement in the country's external liquidity, supports the revision of the rating outlook to stable," Fitch expert Douglas Renwick said in a statement.
News of the ratings upgrade was released alongside comments from finance minister Einars Repse saying that the country's economy was back.
"Now it can be seen that the economic situation in the state is on the right stabilisation path and it is the result of the government’s work in managing the fiscal policy," he said in a statement.
"Not many countries have managed the crisis more successfully. On the international scene Latvia is no longer being described as a state in crisis, as it was in the beginning of the year, but as a potential example for other countries such as Greece, Spain and Portugal. We will be able to reorganise ourselves and perform necessary reforms, and Latvia will get out of the crisis stronger than before," he said.
Latvia's economic recovery has largely been attributed to a set of harsh austerity measures pushed through by the government at the behest of international lenders. The austerity plan has helped Latvia reduce its deficit and avoid a painful currency devaluation.