17.09.2013

Finland’s top credit rating set to stay

Major credit rating agencies express confidence in Finland’s stable long-term outlook following government’s structural reform package announcement.

Finland’s excellent credit rating is very unlikely to fall in the near future, according to the major credit rating agencies Standard & Poor's, Moody's and Fitch which were recently interviewed by the Finnish newspaper Taloussanomat. Finland currently has the best possible credit rating from all three agencies.

A few weeks ago the Finnish government announced a package of structural reforms to tackle rising public debt, and this has been well received by Kristin Lindow who is Moody’s leading analyst on Finland. “The new measures in the structural package tell about the forward-looking policy of the Finnish leaders,” said Lindow. She thinks that Finland’s credit rating depends largely on the government’s ability to act, and is confident that the government will be able to implement the necessary measures.

Finland’s stable outlook

According to Standard & Poor’s analyst Aarti Sakhuja, the reforms are in line with the expectations of the credit rating agency and therefore have no impact on the rating. “Finland’s stable outlook means that the probability for lowering the credit rating during the next 12–18 months is very low, less than one in three,” he said.

Enam Ahmed, Fitch’s leading analyst on Finland, said that he does not believe Finland’s credit rating is in danger of falling during the next 1–2 years. In his view, measures designed to deal with the long-term sustainability deficit in the public finances, especially the introduction of a comprehensive pension reform, would further shore up the credit rating outlook for Finland.

Source: Taloussanomat