Research Update: Latvia Sovereign Ratings Lowered On Rising Fiscal And External Risks; Outlook Negative Oct 08
- ID: 1833203
- October 2008
- Region: Latvia
- Standard & Poors
On Oct. 27, 2008, Standard & Poor's Ratings Services lowered its long- and short-term foreign and local currency ratings on the Republic of Latvia to 'BBB/A-3' from 'BBB+/A-2', due to mounting external vulnerabilities and an expected fiscal deterioration. At the same time, Standard & Poor's also lowered its Transfer & Convertibility assessment on Latvia to 'A' from 'A+'. The outlook is negative. In a related action, the outlook on the City of Riga was revised to negative from stable, and the 'BBB' long-term ratings were affirmed. Our decision to lower the ratings reflects the increased risk that the Latvian government will have to support domestically owned banks under a worsening credit environment. The uncertainty surrounding these banks' liquidity needs, refinancing...
Companies mentioned in this report are:
- Latvia (Republic of)
- Riga (City of)
Action: Outlook: Negative
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Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases. SHOW LESS READ MORE >