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.
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