Japanese rating agency Rating and Investment Information, Inc. (R& I) on Monday raised its rating on Latvia by one notch to "BBB+" from "BBB" with the outlook being stable, the Latvian Finance Ministry reported.

"It is a great achievement for us that another agency has upgraded its rating on Latvia. This year we have been seeing swift external changes that have made us cut our growth forecast. Yet another ratings upgrade despite this is an indication that our international partners have confidence in us and that the Latvian economy is on the right path," said Latvian Finance Minister Janis Reirs.

Affected by the Ukraine conflict, Latvia's economic growth this year has slowed down to 2-3 percent from 4.2 percent in 2013.

"Since the Russian economy is deteriorating sharply and the euro zone economic outlook remains uncertain, the risks to the government's growth forecast of 2.8 percent for 2015 are tilted to the downside," the Japanese ratings agency said.

Latvia's budget deficit for 2015 is predicted at 1 percent of GDP.

Fitch, Standard & Poor's and Moody's have already upped their ratings for Latvia this year.