HELSINKI: The credit rating agency Moody’s has lowered its evaluation of Finland’s future outlook from stable to negative. This means that the rating may fall over the next year.
However, in Moody’s assessment, Finland retains the highest possible credit rating AAA. The basis for the negative assessment comes from deterioration in Finland’s growth outlook, partly due to the fall in exports and the slowdown in productivity growth in recent years.
Also, the large government deficit erodes confidence in Finland’s ability to meet its financial obligations. Finland also holds the best AAA rating from Fitch, but the third major credit rating company, Standard & Poor, lowered its credit rating of the country last October to AA+. A deterioration in rating can, in the long term, lead to an increase in the cost of government borrowing.
