Faroes retain Aa2 credit rating

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.

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Caption: 

The government buildings in Tórshavn

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.