BRIEF-S&P Says Lithuania Outlook Revised To Negative From Stable

BY Reuters | CORPORATE | 12/02/22 04:21 PM EST

Dec 2 (Reuters) -

* S&P SAYS LITHUANIA OUTLOOK REVISED TO NEGATIVE FROM STABLE ON SPILLOVER EFFECTS FROM THE WAR; 'A+/A-1' RATINGS AFFIRMED

* S&P PROJECTS COUNTRY'S ECONOMY WILL FALL INTO RECESSION IN FIRST-HALF 2023 BEFORE RECOVERING IN SECOND HALF & GROWING ONLY 0.5% ANNUALLY

* S&P SAYS RUSSIA-UKRAINE WAR IS LIKELY TO BE PROTRACTED & COULD IMPOSE GREATER SECURITY & ECONOMIC COSTS ON A SMALL REGIONAL SOVEREIGN SUCH AS LITHUANIA

* S&P SAYS LITHUANIA'S FISCAL AND EXTERNAL POSITIONS HAVE SHIFTED INTO DEFICITS

* S&P ON LITHUANIA SAYS RUSSIA-UKRAINE WAR CONTINUES TO IMPOSE ECONOMIC, EXTERNAL, & FISCAL COSTS ON SMALL REGIONAL ECONOMIES, SUCH AS THAT OF LITHUANIA

* S&P SAYS PROJECT LITHUANIA'S CURRENT ACCOUNT TO RETURN TO DEFICITS IN 2022 AND REMAIN NEGATIVE OVER OF FORECAST HORIZON

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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