The rating agency today said that it has downgraded all three Baltic States - Estonia, Latvia and Lithuania. This is yet another blow to the already very fragile Baltic economies and markets. We continue to advise a high degree of caution in the Baltic markets.

All three countries's ratings were downgraded by one notch. The ratings are now as follows:

  • • Estonia: Long-term foreign currency IDR: downgraded to 'A-' (A minus) from 'A'. Outlook remains Negative 

  • • Latvia: Long-term foreign currency IDR: downgraded to 'BBB' from 'BBB+'. Outlook remains Negative 

  • • Lithuania: Long-term foreign currency IDR: downgraded to 'A-' (A minus) from 'A'. Outlook remains Negative