Lithuania's A3 ratings and positive outlook reflect strengthened public-sector finances

In the report Moody's Investors Service says Lithuania’s currency ratings and positive rating outlook reflect the continued strengthening of public sector finances, underpinned by steady reforms in the tax system, in municipal finances, and in the pension and health sectors. In December 2003, Moody's upgraded Lithuania's foreign-currency ceilings and government's foreign and domestic bond ratings to A3 from Baa1. Supporting the ratings and outlook, Lithuania's economic reforms have been accelerated and the regulatory framework of the financial system has been strengthened. “The ratings are also underpinned by the prospects for further production, trade, financial and institutional linkages with the EU, which are expected as the country enters the Union,” says Nina Ramondelli, senior vice president and author of the report.