RIGA, May 10 (Xinhua) -- International ratings agency Fitch Ratings (Fitch) has affirmed Latvia's credit rating at the current "A-" level, maintaining a stable outlook, Fitch said in a statement released on Friday.
The agency cited a credible economic policy framework supported by membership of the European Union (EU) and the euro area, continued low levels of public debt and debt-servicing costs compared to similarly rated countries, and moderate private sector debt as key factors maintaining Latvia's credit rating at its current level.
Among the factors that could lead to a downgrade of Latvia's sovereign credit rating to negative, Fitch cited the escalation of geopolitical risks, which could have a negative impact on the country's economic growth as well as on its public and external financial position.
Fitch forecasts Latvia's real gross domestic product (GDP) growth to rebound to 1.2 percent this year, driven by increased EU funding, defense sector projects, and improved financing conditions. Private consumption and investment were expected to accelerate growth to 2.4 percent by 2026.
Fitch published its previous assessment of Latvia's credit rating on Nov. 15, 2024, affirming the rating at "A-" and downgrading its forward rating from positive to stable. ■