Fitch maintains Latvia's rating

Ratings agency Fitch on July 22 said it was maintaining its existing ratings on Latvia with the caveat that in future it reserved the right to update its ratings at short notice in view on new EU regulations.

"Fitch Ratings has affirmed Latvia's Long-Term Local Currency (LTLC) IDR at 'A-' with a Stable Outlook. The issue ratings on Latvia's long-term senior unsecured local currency bonds have also been affirmed at 'A-'," the agency said.

Under EU credit rating agency (CRA) regulation, the publication of sovereign reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations, Fitch said.

However Fitch interprets this provision as allowing it to publish a rating review in situations where there is a change in its criteria that makes it inappropriate for them to wait until the next scheduled review date, the company said.

The next scheduled review date for Fitch's sovereign rating on Latvia is 4 November 2016, but Fitch believes that a portfolio review is now warranted based on recent changes to its own criteria.

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