OREANDA-NEWS. August 15, 2008. The international credit rating agency "Fitch Ratings" has announced that it raises the long-term rating in foreign currency of AS "Latvijas Krajbanka" (hereinafter Latvijas Krajbanka) to the level B+. The outlook of the rating development is stable, reported the press-centre of Latvijas Krajbanka.

The individual rating of the bank has been raised to the level D. The short term rating for the bank has been maintained at the level B but the support rating is 4.

The agency indicates that the upgrades of the Long-term and the Individual rating reflect the facts of an improved capitalization, lower impaired loans and higher loan loss reserve coverage.

The agency recognizes that although the economic situation in Latvia has been deteriorating the impact on Latvijas Krajbanka has been less than anticipated.

"Fitch" also points out the adequate liquidity, stable domestic funding base of the residents of Latvia and tighter credit standards. Similarly the agency has evaluated the management focus on cost optimization.