Moody’s retains Finland’s credit rating at Aa1

Credit rating organisation Moody’s announced that Finland’s ratings still remained at Aa1, the second highest level and the outlook is stable, said Ministry of Finance in a press release late Friday night.

Moody’s, however, did not take a credit rating action in its periodic review of Finland’s ratings.

According to Moody’s, this is not an indication of whether or not a credit rating action is likely in the near future.

Finland’s ratings are supported by the country’s strong institutions, high wealth levels and well-educated labour force, said Moody’s.

Finland also has strong institutional support for innovation, which creates a solid foundation for a knowledge-based economy.

“While the government has an ambitious agenda to address the deterioration in public finances in recent years, weak real GDP growth has outweighed the impact of a series of fiscal consolidation packages,” Moody’s added.

According to Moody’s, the government’s consolidation measures and structural reforms will reduce Finland’s public deficit and stabilise its debt burden.

Finance Minister Riikka Purra said that Moody’s assessment highlights the importance of a strong commitment to good fiscal policy.

“This is a clear message that the Government has taken the right actions. However, the message is also that we need to continue efforts to strengthen Finland’s economy, particularly our public finances. Adjustments will have to continue during the next parliamentary term,” said Purra in the press release.