Search

 

Cablegate: Latvia: Moody's Revises Latvia's Credit Rating From

VZCZCXRO0010
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHRA #0691 2610610
ZNR UUUUU ZZH
R 180610Z SEP 07
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC 4350
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS RIGA 000691

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN PGOV LG
SUBJECT: LATVIA: MOODY'S REVISES LATVIA'S CREDIT RATING FROM
POSITIVE TO STABLE

1. (U) International credit rating agency Moody's Investors Service
downgraded Latvia's credit rating outlook to stable from positive on
12 September, citing worsening macroeconomic imbalances in the
country. Moody's warned that Latvia's current account deficit, now
at 27 percent of GDP, is among the highest in the world. The firm
also stressed that property markets are exhibiting bubble-like
characteristics--though housing did begin to decline this summer
after a 70 percent rise in 2006.

2. (U) Moody's, however, does not expect a material deterioration in
the government's underlying creditworthiness because the
government's debt levels are very low and the real income gains over
the past decade have been substantial. Latvia's banking system is
also viewed as resilient to both liquidity and external trade shocks
as banks are primarily owned by large Scandinavian banks, and
lending policies have generally been prudent. Moody's reports that
loan performance to-date has been very good, serious risk
managements practices are in place, and banks are adequately
capitalized.

BAILEY

© Scoop Media

 
 
 
World Headlines

 

Ramzy Baroud: Year in Review Will 2018 Usher in a New Palestinian Strategy

2017 will be remembered as the year that the so-called ‘peace process’, at least in its American formulation, has ended. And with its demise, a political framework that has served as the foundation for US foreign policy in the Middle East has also collapsed. More>>

ALSO:


North Korea: NZ Denounces Missile Test

Foreign Affairs Minister Winston Peters has denounced North Korea’s latest ballistic missile test. The test, which took place this morning, is North Korea’s third test flight of an inter-continental ballistic missile. More>>

ALSO:

Campbell On: the US demonising of Iran

Satan may not exist, but the Evil One has always been a handy tool for priests and politicians alike.

Currently, Iran is the latest bogey conjured up by Washington to (a) justify its foreign policy interventions and (b) distract attention from its foreign policy failures.

Once upon a time, the Soviet Union was the nightmare threat for the entire Cold War era – and since then the US has cast the Taliban, al Qaeda, and Islamic State in the same demonic role. Iran is now the latest example…More


Catalan Independence:
Pro-independence parties appear to have a narrow majority. More>>