Moody’s Corporation sign at the companys headquarters in New York City. Photo: Angela Weiss / Lehtikuva
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Moody’s Ratings has upheld Finland’s credit rating at Aa1 with a stable outlook, confirming the country’s position at the second highest level of investment grade.
The decision followed a routine periodic review and did not include any credit rating action.
According to Moody’s, Finland’s credit standing is supported by its strong institutional framework, high wealth levels, and a well-educated labour force.
The agency noted that Finland’s long-term economic potential is backed by support for innovation and structural policies favouring a knowledge-based economy.
The Ministry of Finance released the announcement late on Friday evening.
Finance Minister Riikka Purra welcomed the assessment.
“This is a clear message that the Government has taken the right actions. However, we need to continue efforts to strengthen Finland’s economy, particularly public finances. Adjustments will have to continue during the next parliamentary term,” she said.
Moody’s acknowledged recent fiscal reforms and structural measures, which it said will reduce the public deficit and stabilise the debt burden. The upcoming national fiscal framework, due in early 2026, was identified as a key factor.
At the same time, Moody’s warned that weak GDP growth has offset the impact of consolidation efforts.
“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,” the agency said.
Minister Purra said the assessment underlined the need to follow through on fiscal agreements.
“The Parliamentary Pact for Fiscal Policy is an important step, but it is even more important to make sure it is put into practice,” she said
In July, Fitch Ratings downgraded Finland’s rating by one notch from AA+ to AA, citing rising public debt levels. The downgrade placed increased attention on the Government’s fiscal policies and added pressure to meet budgetary targets.
Moody’s emphasised that the current assessment does not indicate whether a future rating action is likely or not.
Credit ratings affect the terms on which countries can borrow money. While higher ratings usually suggest lower borrowing costs, actual market rates depend on broader economic conditions, investor confidence, and monetary policy environments.
Finland’s rating has remained at Aa1 since 1995. Standard & Poor’s, another major rating agency, currently holds Finland’s rating at AA+.
HT
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Source: www.helsinkitimes.fi
