OREANDA-NEWS. June 09, 2011. Rating agency Moody's Investors Service (Moody’s) changed the outlook on the Baa3 government ratings of Latvia to positive from stable, maintaining stable credit rating at previous level.

“The fact that the outlook on our country’s ratings has been improved from stable to positive is a very important and expected signal for both national security investors and private sector investors, and it will support attraction of investments to the Latvian economy. This assessment is very important for the development potential of the Latvian economy, because it shows that the agency approves previous achievements of the government. However, in order to have credit rating improved in the nearest future, the government should agree on particular and good quality budget consolidation measures”, emphasised Finance Minister Andris Vilks.

Moody’s states that the change of outlook is prompted by the country’s economic recovery and positive medium-term growth prospects and consolidation of public finances.

Moody’s also considers as positive Latvia’s progress towards meeting the criteria for the country’s entry into the euro area.

Moody’s notes that president’s proposal to dissolve parliament will not affect agency’s outlook, however it will follow developments in the political situation in Latvia and if as a result of political developments the government of Latvia were to become less committed to the consolidation of the public finances then Moody’s would consider moving the outlook on Latvia’s ratings back to stable.