Faroes retain Aa2 credit rating

American credit rating firm Moody’s has announced that the Faroes retain their current Aa2 rating.

Defined as having “a very strong capacity to meet its financial commitments”, Aa2 is the third-highest rating on the 21-tier scale of the country risk rating scale.

A good credit rating improves the interest rates that the Central Bank pays on loans from foreign investors.

High financial independence

Moody’s concludes that:

- the Faroes have a healthy degree of financial independence.

- the Faroe Islands have a low level of refinancing risk, with a minimum liquidity of DKK 3 billion.

- the Faroese external debt is unlikely to increase this year and next year.

Read the Faroese version of this article here.

More Faroese News in English.