Main / Press releases and speeches / Press releases / Standard & Poor's placed Finland's AAA long-term rating under re..
Standard & Poor's (S&P) placed its long-term sovereign credit rating on the Republic of Finland on CreditWatch review with negative implications. Earlier this year, S&P confirmed Finland the highest possible rating, AAA for long-term credit, and A-1+ for short-term credit.
As grounds for their decision to place Finland on CreditWatch, S&P expresses their concerns about the potential adverse impact of deepening political, financial, and monetary problems within the European Economic and Monetary Union.
S&P concludes their review after the European summit on December 9th, 2011. S&P may decide to lower their rating by one notch, to AA+, or affirm the rating at its current level if they deem the actions decided on at the summit as sufficient.
The Finnish Government participates actively in finding immediate, sustainable solutions to internal issues in co-operation with other Member States in the European Economic Union. The best way to return confidence in the public finances of single euro area member states is now to recover trust in the euro area as a whole, and more specifically in the sustainability of the public finances of its big member states.
In addition to the weakening policy coordination in the euro area, the credit rating agency is concerned about the possibility that a prolonged financial crisis could complicate Finnish banks´ access to funding and increase the risk of the need for government interventions, causing contingent liabilities to materialize. The comparatively good condition of the Finnish banking sector does not, however, call for that kind of action for the time being.
As a small and open economy Finland is highly exposed to international economic developments. Therefore, solutions on the European level that contribute to global economic recovery are essential. On the national level, the Government has in its programme committed to ensure in its spending limits decisions that the Finnish State maintains its current credit rating.
Inquiries: Director General, Mr Jukka Pekkarinen, tel. 358 9 160 33191
Ministry of Finance P.O BOX 28 FIN-00023 GOVERNMENT Tel. +358 295 16001 E-mail: valtiovarainministerio@vm.fi
