- Published on Wednesday, 04 April 2012 12:41
- Written by RTT News
Fitch Ratings on Wednesday affirmed Denmark's sovereign ratings, citing prudent economic policies combined with the stability of the financial system.
The rating agency confirmed the long-term foreign and local currency Issuer Default Ratings at 'AAA'. The outlook on the long-term ratings is Stable.
The economic recovery has been modest and GDP growth in 2010 and 2011 has barely exceeded 1 percent a year, a rate Fitch does not expect it to out-distance in 2012-2013.
Denmark has taken a proactive role in enhancing banking supervision and preparing for the introduction of Basel III regulations, including being one of the few countries to introduce a financial sector burden-sharing mechanism for the orderly resolution of future bankruptcies, at least among the smaller banks, Fitch said.
Although the 2012 deficit is likely to exceed 3 percent, the government has undertaken to bring it below the reference rate in 2013 and is expected to take the first realistic opportunity to restore a surplus, the rating agency added.
Denmark's 'AAA' rating is further underpinned by its diversified economy, high income per capita, and a robust institutional framework.
by RTT Staff Writer