Fitch affirms Finland’s AAA credit rating

Finland’s score on governance indicators outperforms AAA rated peers, according to Fitch Ratings.

Fitch Ratings has affirmed Finland’s AAA credit rating, with a Stable Outlook. According to Fitch, Finland’s ratings reflect very high governance indicators, strong political and social institutions and an excellent track record of prudent fiscal and macroeconomic policy management. Fitch notes that Finland’s score on governance indicators outperforms even AAA rated peers.

In its analysis of the Finnish economy, Fitch states that Finland does not currently suffer from major imbalances in the household and external sectors. Finland recorded a small current account deficit of about 1% of GDP for the third year in a row. Finland’s terms of trade stabilised in 2013 and the Finnish government introduced a series of measures aimed to increase the economy’s growth potential and address the long-term fiscal sustainability challenge.

Faster growth expected in 2015

Fitch expects the Finnish economy to grow by 0.6% this year, with net exports accounting for the improvement in economic growth, as prospects in Finland’s key export markets improve further. Real GDP growth is expected to accelerate in 2015.

Finland’s stable outlook means that Fitch does not currently anticipate developments with a high likelihood of leading to a rating change. Fitch assumes that economic or financial sanctions against Russia do not substantially affect Finland’s economic performance.

Source: Fitch Ratings