International credit rating agency „DBRS Morningstar“ has reaffirmed Lithuania's previously assigned „A (high)“ long-term debt rating with a stable outlook.

According to the experts at DBRS Morningstar, the stable outlook reflects the assessment that Lithuania's prudent fiscal policy and low level of public debt mitigate the risks stemming from the challenging geopolitical environment. In addition to the above, Lithuania's membership of the euro area and its resilient export sector also contributed to the Agency's decision. Lithuania's economic recovery this year is expected to accelerate further next year, while its lower debt levels compared to other euro area countries will give it the space to respond to potential challenges if needed.

„We are pleased with the stable trajectory of the credit ratings – the maintenance of a high credit rating and the confirmation of a stable outlook in a challenging geopolitical environment shows that we are pursuing a responsible fiscal policy despite the challenges, and that we are following a sustainable long-term public finance management path“, – says Deputy Minister of Finance, Darius Sadeckas.

„DBRS Morningstar“ last changed Lithuania's long-term debt rating in November 2021 – upgraded it from „A“ to „A (high)“ with a stable rating outlook. 

October 18. On 18 October, another international agency, „Moody’s Investment Service“, completed its periodic review of Lithuania's credit rating. The analysts of this agency consider Lithuania's situation to be stable, so a decision was taken not to change the country's current „A2“ long-term borrowing rating (stable outlook) and to publish a report on Lithuania next week assessing the country's economic outlook.

In their report on the completion of the review, Moody's experts highlighted Lithuania's strong public finances and sound fiscal policy. The agency expects a strong labour market and public sector investment to have a positive impact on domestic demand, while external demand will gradually grow. Analysts believe that Lithuania's economic indicators may improve faster than currently expected, which could lead to a more favourable evolution of government finances than expected.

„Moody’s“ last upgraded Lithuania's credit ratings in February 2021, when the long-term borrowing rating of A3 (positive outlook), which had been assigned in 2015, was upgraded to A2 (stable outlook). 

In May this year, the same high credit rating of „A“ (stable outlook) was reaffirmed for Lithuania by „Fitch Ratings“ (the rating is due in January 2020). In May, Lithuania's rating was also reviewed by another credit rating agency, S&P Global Ratings, with a rating of "A" (stable outlook) and a short-term borrowing rating of "A-1".