Moody’s Ratings takes no credit rating action in periodic review of Finland’s ratings

Moody’s announced that Finland’s ratings are still at the second highest level, Aa1, and Finland's outlook is stable.

Minister of Finance Riikka Purra is happy with Moody’s assessment.

“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,” Minister Purra said. 

Moody’s did not take a credit rating action in its periodic review of Finland’s ratings. Finland’s ratings are at the second highest level, Aa1, and its outlook is stable.  According to Moody’s, this is not an indication of whether or not a credit rating action is likely in the near future.

Ratings supported by strong institutions, hindered by weak economic development

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

According to Moody’s, the Government’s consolidation measures and structural reforms will reduce Finland’s public deficit and stabilise its debt burden. According to the agency, this view is underlined by the new national fiscal framework that will come into effect early next year.

According to Minister Purra, Moody’s assessment highlights the importance of a strong commitment to good fiscal policy.

“The Parliamentary Pact for Fiscal Policy is an important step, but it is even more important to make sure it is put into practice,” Minister Purra said.

Inquiries:
Jussi Lindgren, Economic Policy Adviser to the Minister of Finance, tel. +358 295 530 514, jussi.lindgren(at)gov.fi
Sari Sontag, Senior Ministerial Adviser, tel. +358 295 530 181, sari.sontag(at)gov.fi