Article: LATVIA: MOODY'S ASSIGNS A2 RATINGS TO CITY OF RIGA; STABLE OUTLOOK.

Moody's Investors Service has assigned foreign and local currency issuer ratings of A2 to the City of Riga. The ratings outlook is stable. The ratings reflect the application of Moody's Joint-default Analysis (JDA) methodology for regional and local governments (RLGs). In accordance with this methodology, Riga's ratings reflect the combination of the following inputs: a Baseline Credit Assessment (BCA) of 7 (on a scale of 1 to 21, where 1 represents the lowest credit risk); the A2 local currency rating of the Government of Latvia; 70% default dependence (degree to which Riga's and Latvia's default risks are correlated); and a 50% likelihood that the central ...

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