Lithuania's credit rating and outlook upgraded after 4 years

International credit rating agency „Scope Ratings“ has upgraded Lithuania's long-term borrowing rating from A to A+ and changed the outlook from positive to stable. Scope Ratings“ had last upgraded the country's rating in 2021.

According to the agency's experts, the upgrading of Lithuania's credit rating was driven by the country's sustained economic growth, resilience to external factors and stable fiscal outlook. In their report, analysts at Scope Ratings also highlighted the country's public debt levels, which are among the lowest in the euro area, and the high level of public investment in the European Union.

„The upgrade strengthens our country's credibility in international markets, but at the same time obliges it to maintain financial discipline and pursue responsible economic policies," says Deputy Finance Minister Darius Sadeckas.

„Scope Ratings“ in its report highlights the country's strong economic performance. Last year, Lithuania's GDP per capita reached 63% of the euro area average (22 percentage points higher than in 2015), and measured in purchasing power standards, GDP per capita was 84% of the euro area average (14 percentage points higher than in the same period).

According to analysts, the Lithuanian economy grew by 2.8% last year, driven by strong private demand and a strong services sector. They expect GDP to grow by 3% this year and 2.9% next year, supported by resilient household consumption underpinned by strong labour market conditions and wage growth, as well as a recovery in private investment, especially in residential construction.

„Scope Ratings“experts point out that vulnerability to external shocks remains the main risk, given Lithuania's small economy, still relatively middle-income level, and existing borders with Kaliningrad and Belarus. Risks also include unfavourable demographic trends and high defence spending commitments, which will put long-term pressure on the fiscal trajectory.

The latest report from credit rating agency „Scope Ratings“ can be found here.

We would like to remind you that at the end of May this year, the international credit rating agency S&P Global Ratings affirmed Lithuania's long-term debt rating of &bdash; „A“ with a stable outlook.The last review of Lithuania's rating by analysts at Standard & Poor's“s“ took place in May 2024, setting it at „A“ (stable outlook) and maintaining the A-1 short-term borrowing rating, while in December last year it published a report on Lithuania assessing the outlook for the economy.

In early May, the international credit rating agency Fitch Ratings affirmed Lithuania's „A“ rating, with a stable outlook.

In mid-April, „Moody’s published a report on Lithuania   the agency s analysts view Lithuania's situation as stable, and a decision was taken not to change the country's current rating (A2 with stable outlook). Moody's’s“ had last upgraded Lithuania's credit ratings in February 2021, when the long-term borrowing rating of A3 (positive outlook), which was assigned in 2015, was upgraded to A2 (stable outlook).