Article: LATVIA: MOODY'S DOWNGRADES CITY OF RIGA TO BAA1; OUTLOOK NEGATIVE.

Moody's Investors Service has today downgraded the foreign and local currency issuer ratings of the City of Riga in Latvia to Baa1 from A3. The outlook remains negative. The lowering of the city's ratings were triggered by Moody's revision of the Government of Latvia local and foreign currency issuer and debt ratings to Baa1 with negative outlook from A3 negative. The latter action reflects the intensification of the economic adjustment in Latvia since October 2008. The economic downturn is now expected to be deeper and more prolonged than previously assumed and will lead to a significant rise in central government borrowing to smooth the adjustment and prevent a major ...

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