07.05.2013

Fitch affirms Finland’s AAA credit rating

Finland has the best possible ratings from the major international rating agencies.

The international rating agency Fitch Ratings has affirmed the long-term credit rating of 'AAA' for Finland, with a stable outlook. Finland also has the best possible rating from rating agencies Moody’s (Aaa) and Standard & Poor’s (AAA).

According to Fitch, Finland's rating is underpinned by a combination of strong governance, high income per capita, a positive net international investment position and an impeccable debt service record. Finland’s public finances remain robust compared to peers. At 53% of GDP in 2012, general government debt is in line with the 'AAA' median and well below eurozone rating peers, including Germany.

Stable outlook

According to Fitch, Finland’s banking sector is sound, well capitalised and has limited exposures to troubled eurozone economies limiting the macro-financial risks arising from the crisis. Finland does not currently suffer from any major macroeconomic imbalances.

The stable outlook means that Fitch’s sensitivity analysis does not currently anticipate developments with a material likelihood, individually or collectively, of leading to a rating downgrade over the next one or two years. Fitch predicts GDP growth in Finland of around 0.4% in 2013 before picking up to 1.4% in 2014 on the recovery in the eurozone.

Source: Fitch Ratings