OREANDA-NEWS. August 05, 2008. The international ratings agency "Standard & Poor's" (S&P) forecasts stable development perspectives for Riga and retains its credit ratings as before, as the secretary of Riga City Council's Financial Department Sigita Skapare informed.

S&P underline Riga's positive financial performance and retain Riga's long-term credit liabilities rating BBB, short-term rating A-3 and forecast stable development perspectives,. However, the development perspective for Latvia's credit rating as set for this year, is assessed as negative.

S&P credit rating reveals Riga's stable financial situation, which is based upon its strong economic potential, balanced budget plans and successful budget performance.

S&P points out that although the volume of investments, made by Riga municipality has significantly increased in the past few year's time and several large scale investment projects have been started in Riga, for the fourth consecutive year Riga has had a budget with a surplus. A positive development of Riga municipality's financial and budget indexes is being forecasted also for the oncoming years.

The credit ratings agency underlines that the core elements for continuous stable economic development in Riga are a balanced budget policy, growth of city's economic potential and a more efficient utilization of European Union funding for city development projects.

"I see the fact that Riga's development perspectives have been assessed as stable in a situation where the entire country's development prospects are negative, as approval of the municipality's efforts the past few years. We have been implementing consistent and transparent financial policy and loan management strategy.

I believe that the stable development rating acknowledges that international financial markets regard Riga as a perspective cooperation partner in the sector of attracting finances," Riga City Council Financial Department Director Ilga Tiknuse explained.