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Faroes retain Aa2 credit rating
Faroes retain Aa2 credit rating
The Faroes have a very strong capacity to meet financial commitments, says major credit rating firm
Photo: Shutterstock.com
17.08.2023 - 11:11
On Friday, American credit rating firm Moody’s announced that the Faroes retain their current Aa2 rating, reports the Faroese national bank.
Aa2 is the third-highest rating on Moody’s 21-level country risk rating scale.
A good credit rating is important as it attracts investors seeking safer, less volatile investments.
It also improves the interest rates that the national bank pays on loans from foreign investors.
Moody’s writes that to achieve a higher credit rating, the Faroese foreign debt must go down significantly, or the economy must become more diversified.
To retain its Aa2 rating, the country must avoid a significant increase in its foreign debt, there must be no structural budget deficits, the fishing/aquaculture industries must suffer no major setbacks and relations with Denmark must not deteriorate.
Read the Faroese version of this article here.
More Faroese News in English.
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