Latvia's Credit Ratings
Moody's
On August 11, 2003 Moody's reported that Latvia has stable A2 rating supported by ongoing EU integration, strengthened financial system, and manageable government debt. This rating under the Moody's definition means the following: "obligations rated A are considered upper-medium grade and are subject to low credit risk", "the modifier 2 indicates a mid-range ranking".
Fitch IBCA
On November 4, 2003 Fitch assigned a Long-term rating of BBB+ to Latvia. The rating Outlook is Positive.
On July 23, 2003 Fitch assigned a Long-term local currency rating of A to Latvia. The rating Outlook is Stable.
Follow the link to read about Fitchs International Long-Term Credit Ratings definitions.
Standard&Poor's
Foreign currency BBB+/Positive/A-2
On April 13, 2004, Standard & Poor's reported its assessment of the risk of the sovereign or central bank imposing foreign exchange controls on non-sovereign borrowers in Latvia(as well as Estonia, Lithuania and Slovenia) expected to join EMU by 2008. The revised assessment will allow non-sovereign ratings in Latvia to reach the 'AA' category without concern for transfer and convertibility risk, which previously might have kept the foreign currency rating on such issuers below the local currency rating. As a result, the highest long-term foreign currency rating that a non-sovereign debtor can generally achieve in Latvia has been raised to 'AA' from the current level of 'A+', in place since 2002.
Under Standard&Poor's definition BBB rating means that obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. The rating is modified by the addition of a plus sign (+) to show relative standing within the major rating categories.
Related links: Moody's; Fitch IBCA; Standard&Poor's.
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