Fitch Ratings on Friday affirmed the sovereign ratings of Estonia at 'A+' with 'stable' outlook.

The ratings are underpinned by its strong public finances, economic policy framework and governance indicators. Moreover, Euro membership reduces substantially the risk of balance-of-payments crises, it said.

Public finances are a key credit strength. Estonia's government debt-to-GDP ratio of 10 percent is by far the lowest in the European Union.

The general government deficit remained broadly unchanged in 2013, at 0.2 percent of GDP. Fitch expects this to widen in 2014 due to a lower tax take, before edging down in 2015 to 0.7 percent.

Estonia's external debt sustainability has improved substantially over the past four years. Fitch expects economic growth to pick up over the course of this year, averaging 1.7 percent. An acceleration in GDP growth to 3.1 percent is expected in 2015.

However, as a small, open economy, Estonia is vulnerable to adverse shocks affecting its main trading partners. Further, it noted that current demographic trends are a rating weakness, with both the total and the working-age population shrinking.

RTTNews