Finland Times

 

File Photo AFP-Lehtikuva

International credit rating agency Moody's affirmed Finland's rating at the top level of "Aaa" on Wednesday.

     

"Finland's Aaa rating with stable outlook is supported by the Finnish government's multiple credit strengths," Moody's said.

     

It said "the Finnish financial system is well-regulated with high-quality assets and good capital adequacy. In addition, Finland's education system is among the world's best, which converts into an innovative and skilled workforce."

     

However, Finland had credit weaknesses relating mainly to a steep downturn in demand in two key economic sectors, telecommunications and forestry, and an extended deterioration in its exports, it said.

     

Moreover, climbing unemployment and an aging population were also factors constraining economic growth, the agency said.

     

Despite the weaknesses, Moody's believed Finland's credit rating outlook was stable "because the authorities have responded to these challenges with reforms designed to regain competitiveness, to spur growth in both the short and long term, and to address the fiscal and social consequences of an aging population."

   

The other two major rating agencies, Fitch Ratings and Standard and Poor's (S&P) rubber-stamped their top ratings for Finland at the end of March and the start of April, respectively.

     

Nevertheless, S&P lowered Finland's credit outlook from "stable" to "negative", saying the sluggish economic growth could hamper the government's efforts to balance public finances.

     

The Finnish Government announced a series of fiscal adjustment measures with a spending cut package totaling 2.3 billion euros last month as it struggled to tackle the long-term fiscal sustainability challenges.