On 2 July 2007, Standard & Poor's Ratings Services revised its outlook on the Republic of Estonia to negative from stable. At the same time, the long-term 'A' and short-term 'A-1' sovereign credit ratings on the country were affirmed.

"The decision of Standard & Poor's reflects possible changes in the expectations of investors, referring to an increase in risks associated with strong domestic demand. The decision of the rating agency once again emphasises the significance of a fiscal policy supporting a soft landing. At the same time, it is important that credit growth should continue to slow," commented Andres Sutt, Deputy Governor of Eesti Pank.