Rating agency Standard & Poor's is upgrading its outlook on Lithuania from "negative" to "stable."

"Lithuania has undertaken aggressive fiscal consolidation measures in the wake of the financial crisis. We are revising the outlook on Lithuania to stable from negative," said a statement from Standard & Poor's issued in London.

"The ratings on Lithuania reflect clear commitment across all political parties to support and implement budgetary and structural policies which anchor the currency board regime and enhance the economy's flexible labor and goods markets," said credit analyst Frank Gill.