S&P raises Riga

Standard & Poor's said it raised its long-term foreign and local currency issuer credit ratings on the Latvian capital City of Riga to BBB from BBB-.

At the same time, the A-3 short-term ratings on Riga were affirmed. The outlook is stable.

The upgrade reflects the city's improved financial management and transparency, increased co-financing of infrastructure projects by the EU and better financial performance on the back of strong economic growth and cautious budgeting, the agency noted.

The ratings continue to be supported by Riga's strong position in the Republic of Latvia's economy (A-/stable/A-2), its moderate debt burden strong intergovernmental control framework, but the rating is constrained by low revenue autonomy and the fragility of the political coalition pressing infrastructure needs, S&P added.

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