Moody’s kept the government’s credit rating at the second highest level

Credit rating company Moody’s Ratings has kept the credit rating of the Finnish government unchanged at the second highest level, Aa1. The Ministry of Finance informs about this in its announcement late on Friday in the bulletin.

According to the company, the outlook for Finland’s classification is stable.

Last July, Fitch Ratings, the second Finnish government contract-based credit rating company, lowered the rating by one notch from AA+ to AA. It justified its decision with public indebtedness.

Now According to the Ministry of Finance, Moody’s says that the credit rating is supported by Finland’s strong institutions, high wealth level and educated workforce.

The company also believes that Finland’s public finance deficit will narrow and the debt burden will stabilize, because the government has made adjustment measures and structural reforms.

On the other hand, weak economic development has had the opposite effect and reduced the effects of the government’s adjustment packages, according to Moody’s, according to the Ministry of Finance.

Finance minister Riikka Purra (ps) predicts in his ministry’s press release that the next government will also make adjustments.

“The assessment gives a clear message that the government has taken the right steps. But the message is also that we must continue to strengthen the Finnish economy, especially the public finances. The adjustment measures will continue in the next government term,” Purra has said, according to the press release.

Credit ratings affect the conditions for obtaining a loan, at least in theory. The better the rating, the easier and cheaper it is to get a loan. In practice, however, the effect is not necessarily so straightforward, as other things also affect the terms of the loan.