Will Latvian Ratings Be Cut?

BMI View: The outlook on Standard & Poor's Latvia credit ratings has been changed from stable to negative. This reflects an increasing concentration on the imbalances within the domestic economy in the absence of rapid eurozone membership prospects. With the lat unlikely to be replaced by the euro this decade, financing the current account deficit while retaining the currency peg has come back into the spotlight. Expect greater concerns about Baltic credit ratings amid the boom and run up in external

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