Advertise On EU-Digest

Annual Advertising Rates

4/10/09

The Baltic Course: Fitch cuts Estonia, Latvia and Lithuania ratings

For the complete report from The Baltic Course click on this link

Fitch cuts Estonia, Latvia and Lithuania ratings

London-based ratings agency Fitch on Wednesday downgraded the EU Baltic states Estonia, Latvia and Lithuania, citing their sliding economic situation. Fitch said it had cut Estonia's long-term foreign currency issuer default rating to BBB+ from A-, Latvia's to BB+ from BBB-, and Lithuania's to BBB from BBB+, and maintained its negative outlook for all three.

Latvia, which along with Estonia and Lithuania won independence from the crumbling Soviet bloc in 1991, had a reputation as a "tiger" in the European Union, which it joined in 2004. The economy of Latvia, a country of 2.3 million people, grew 11.9% in 2006 and 10.2% in 2007. But output fell 4.6% in 2008 and the government forecasts it will shrink 13.0% this year.

No comments: