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Standard & Poor's changes outlook for Finland to negative

Staff writer |
Standard & Poor's changed the outlook for Finland from stable to negative, but did not change the credit rating that remained at AA+.

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S&P said the economic growth in Finland may remain below average despite the fact that the current government has committed itself to structural reforms.

The agency believed that Finnish state debt grows in the future as well, unless economic activity recovers and the employment situation improves more than S&P expects.

Finnish national broadcaster Yle noted that a change from "stable" to "negative" indicates a roughly 30 percent chance of a further decline in the S&P credit rating of Finland during the upcoming two years, if Finnish economy shows no sign of recovery. S&P downgraded Finland from Finland to AA+ a year ago.

Last week another agency Fitch chose to keep Finland in the best Finland group, but also depicted the future as negative. A decision from Moody's is due next week.

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