The post Finland’s Credit Rating Cut to AA by Fitch on Fiscal Weakness appeared first on Coinpedia Fintech News
Fitch Ratings downgraded Finland’s long-term foreign-currency issuer rating from “AA+” to “AA,” citing rising government debt and insufficient measures to control spending. Debt is expected to rise to 86.3% of GDP in 2025 and may exceed 90% by 2029, well above peer averages. Despite a €9 billion fiscal package, deficits are set to remain above 3% until 2027. Finland’s GDP growth lags Europe, unemployment has risen to 9.2%, and inflation is picking up. Still, strong pension assets and a solid banking sector provide some support.