Moody's cuts Riga

Moody's Investors Service said it downgraded the foreign- and local-currency issuer ratings of the city of Riga in Latvia to A3 from A2.

The outlook remains negative.

The downgrade reflects the high exposure of the city's budget to the economic cycle in the context of a dramatic change in national growth prospects, Moody's said.

The downgrade also acknowledges the city's increasing use of off-balance sheet liability financing schemes to fund infrastructure projects, the agency said.

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