The credit risk measurement agency Moody’s has confirmed the Aaa rating -the maximum it grants-with a stable perspective, to Denmark for its high economic resilienceconsidering that it counteracts the negative implications of tensions with the United States over Greenland.
In a report, the firm ratifies the Aaa grade for the senior unsecured issuer ratings in local and long-term currency of the Government of Denmark.
This rating reflects Denmark’s solid public balance sheet, its strong institutions and its high economic resilience.
Some strengths that say that offset negative credit implications of geopolitical tensions in Europe, in particular increased security risks arising from the Russian invasion of Ukraine and tensions with the United States over security arrangements and the status of Greenland.
Moody’s explains that it maintains its stable outlook for Denmark due to the credit strength of the country, which will continue to offset the high geopolitical risks.
Additionally, the credit rating agency says that does not foresee Denmark’s security risks increasing significantly and assumes that a diplomatic solution regarding Greenland will be reached that will keep the security environment of Europe and Denmark largely unchanged.
He also points out that, despite Denmark’s vast size, the impact of that territory in Denmark’s fundamental credit profile is insignificant, given its limited economic links.
