Fitch Ratings, like the other main rating agencies S&P and Moody’s all give the same ratings to the four Nordic countries – here is a snapshot from Fitch Ratings:
Sweden’s ratings reflect a wealthy and high-value-added economy, with governance indicators in line with ‘AAA’ rated sovereigns. A credible policy framework, sound public finances and strong external metrics underpin macroeconomic and financial stability. Strong fundamentals, which include a high level of domestic savings and a well-capitalised and profitable banking sector, should help mitigate pressures stemming from the combination of high inflation, monetary policy tightening and the recent decline in real estate prices.
Denmark’s ratings reflect a wealthy and high-value-added economy, with governance indicators above the median of its rating peers. A credible economic policy framework, sound public finances, and strong external metrics underpin a record of macroeconomic and financial stability. Macro-financial stability risks derived from high interest rates, given high levels of household indebtedness, are mitigated by a very strong aggregate household balance sheet (net financial wealth of 244% of GDP in 2Q23), high domestic savings, and Danish financial institutions’ strong capital buffers.
Norway’s credit profile is supported by extremely strong sovereign and external balance sheets, very strong institutions and high GDP per capita. The sharp increase in revenues from the surge in energy prices further strengthened Norway’s sovereign and external balance sheets in the last two years.
Finland’s ‘AA+’ ratings are supported by very high governance indicators, high income per capita, eurozone membership and the pension system’s strong asset position. These are balanced against higher public indebtedness compared with the ‘AA’ median and low potential growth. The Stable Outlook reflects our view of a gradual improvement in economic activity, as well as the political commitment and implementation of public finance and structural reforms to improve Finland’s fiscal position over the medium term
