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S&P Global notes, that the outlook revision to positive from stable reflects Latvia's current fast economic expansion. The ratings benefit from strong economic growth driving per-capita GDP, although income convergence still has some way to go relative to most Eurozone peers. In addition, GDP growth could influence improvements of the country's labor market. European Union funding is also rating positive, because it promote moderate current account deficits.

The ratings on Latvia are supported by a track record of effective policy making, prudent fiscal policy, and moderate and declining net government debt. If Latvia's external and net government debt continues to shrink clearly and Latvia's economic growth continued at a faster pace than currently anticipated, without raising worries about overheating, S&P Global could raise the ratings.

The growth of Latvia's economy this year is the fastest over the last five years, and credit rating agency’s “S&P Global” revised rating outlook is a significant confirmation that we are moving in the right direction. Latvia is able to demonstrate the consistent implementation of policies, including responsibility in planning the next year's state budget. Also, this success is based on intensive work on improving the tax system, which will bring significant changes in the coming years, admits the Finance Minister Dana Reizniece-Ozola.

Credit rating agency expects fiscal prudence to be maintained despite tax reform and upcoming elections next year.

S&P Global hasn`t changed Latvia's credit rating since May 30, 2014, when it increased the credit rating from "BBB +" to "A-" with a stable outlook.

The previous S&P Global announcement was on March 24, when they affirmed Latvian credit rating for long-term local and foreign currency at "A-" with stable outlook.

Full press release in S&P Global homepage (registration required).