Standard & Poor’s: Lithuanian Government Is Taking Sufficient Measures

On Monday Standard & Poor's (S&P) affirmed Lithuania's long-term investment grade sovereign foreign currency BBB credit rating and removed it from a CreditWatch negative position, citing government commitments to address deteriorating public finances.

“The removal of the CreditWatch placement reflects the Lithuanian authorities' commitment to take sufficient measures to rein in the deterioration in the public finances, including measures to stem the widening deficit of the Social Funds Budget,” S&P sovereign credit analyst Mr. Frank Gill said.

S&P said Lithuania's economy is more flexible than many of its peers, citing a decline in wages and prices in 2009.