Finland is only country with a stable triple-A credit rating in euro area

Moody's praises Finland's budgetary discipline, diversified export markets and stable banking sector.

The credit rating agency Moody’s has affirmed the highest possible, triple-A rating for Finland. The agency also noted that the country's outlook remains stable. This makes Finland the only eurozone country that currently has a stable triple-A rating. Finland has also been given a triple A rating from the other major credit rating agencies Standard & Poor's and Fitch Ratings.

According to Moody's one major factor that underlies the triple-A rating include Finland's robust public finances and disciplined public financial management. For example, Finland has never breached the EMU criteria.

Moody's assessment also notes that Finland while Finland is not immune to the eurozone crisis, it has "strong buffers which differentiate it from the other AAAs". Finland has geographically diversified export markets and only about one third of Finnish exports is sold to the euro area. Finland’s also has a stable bank sector and the government has taken measures to restrict possible losses on loans to other euro area countries by means of collateral agreements.

Finland's Ministry of Finance notes with satisfaction Moody’s strong faith in Finland’s financial policy management. However, the rating agency also stresses that Finland's economy and public finances will continue to be challenged as long as the euro area crisis persists.

Sources: Yle, Ministry of Finance, Moody's