Finland's sterling image cracks, S&P downgrades outlook to 'negative'
Published on Apr 11, 2014 11:40 PM
AHELSINKI (AFP) - Standard and Poor's on Friday downgraded Finland's outlook to "negative," putting a crack in the credit image of one of the few countries to hold the top-notch "AAA" rating.
Prior to that, Finland was the only eurozone country to hold both the prized "triple A" rating and a stable outlook from all three ratings agencies - S&P, Fitch and Moody's.
Finland has long prided itself for having extremely strict fiscal management that has allowed it to avoid ever breaking EU fiscal rules.
But S&P said a persistent sub-par growth rate was reflective of "deep structural demographic and economic imbalances that hamper the government's efforts to achieve fiscal consolidation."
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