AAA rating for Danish economy
13 March 2014
The international agency Fitch Ratings once again assesses a stable outlook for Danish economy with a prime triple-A rating.
The track record of macro-financial stability reflected by low and stable inflation, current account surpluses and the stable banking sector are mentioned as key drivers for the Danish top rating in a press release by Fitch Ratings.
-The Danish government's proven record of fiscal discipline strengthens credibility for its current medium-term fiscal strategy. Although lacking a strong reserve currency status, the recent eurozone crisis has shown market confidence in Denmark's public finances and Danish krone assets. Large inflows of safe haven capital allowed the sovereign to borrow at historically low rates, and the government has successfully exploited the favourable financing environment to extend the average maturity and duration of its debt portfolio, reducing refinancing and interest rate risk, it adds.
Denmark has strong and transparent institutions, which contribute to a stable political and economic environment, outperforming the 'AAA' rated medians in five out of six World Bank governance indicators. Denmark also receives top ranking in a range of other international rankings, such as the World Bank’s Ease of Doing Business Index.
Read the original press release by Fitch Ratings