Latvia: Fitch affirms credit rating at A- with positive outlook

US-based credit rating agency Fitch Ratings has reaffirmed Latvia’s sovereign credit rating at A-, which is unchanged from the previous rating in February 2023, LSM reports. At the same time, the agency revised its rating outlook from stable to positive. Fitch noted that Latvia had eliminated its dependence on Russian energy imports and reduced non-energy trade links with Russia, although they remained a potential source of vulnerability. Also, Latvia remained exposed to a potential new energy price shock, Fitch added. The agency expects the country’s inflation to fall rapidly and the fiscal deficit to narrow. Fitch projects that Latvia’s GDP growth will be around 3% in 2024-2025.