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Credit agency Fitch affirms Finland's AA+ rating

Fitch Ratings has decided to keep Finland's credit rating at its second-best level of assessment, due to the country's political stability and good governance. Fitch demoted Finland from its top triple-A rating in March 2016.

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Image: Ismo Pekkarinen / AOP

One of the top three credit ratings agencies in the world, Fitch, has affirmed Finland's rating at AA+. Fitch Ratings justified its choice by citing the country's "high value-added economy, political stability and very strong governance and institutional strengths".

The institution also confirms a stable outlook for the Finnish economy.

"Real GDP is set to grow by 2.3 percent in 2017, its fastest pace of expansion in five years, supported by the upswing in global trade. This is above our previous forecast of 1.2 percent," their press release reads.

Structural limitations have held back GDP growth and strained public finances, Fitch reported, prohibiting the highest rating of triple-A.

The other two leading credit ratings agencies have also arrived at the same conclusion. Standard & Poor's downgraded Finland's rating from AAA to AA+ in the autumn of 2014 and Moody's dropped its rating to Aa1, its second-best status, in June 2016.

The higher grades are intended to represent a lower probability of default on debt. Countries judged to have a low risk of default find it easier to secure loans at lower interest rates.

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