Independent credit rating institute Standard & Poor’s has announced that Stockholm County Council is to retain its high credit rating.
Stockholm County Council maintains its AA+ credit rating, which is the second-highest credit rating in the long term. The short-term rating is once again the highest possible credit rating of A-1+.
Standard & Poor's assesses the credit rating of the County Council twice a year. If the assessment has not changed, they do not issue a new report. This was the case on this occasion, which is why links are included to the report from April and Standard & Poor's publication calendar.
"The high credit rating from Standard & Poor's gives us continued favourable conditions for borrowing capital for the major investments that we are currently making in health and medical care and in public transport," says Frida Korneliusson, Managing Director of AB Stockholms läns landsting Internfinans. To maintain a high credit rating in the future, it will be even more important for the County Council to assert control over the rate of cost increase.
The credit rating institute confirms that the County Council has strong finances and a strong financial management, which contributes positively to the high credit rating. Other factors taken into account by Standard and Poor's are the County Council's strong liquidity and Stockholm's good, stable economic development. They also take into account the action programmes that have been adopted and are now being implemented in order to control the rate of cost increase.
Standard & Poor's analysis extends up to the end of 2018. In its credit assessment, the institute has taken into account the County Council's expanded investments in health and medical care and public transport, which will increase the level of debt in relation to revenue to a moderate level by international standards.
The credit rating institute has also taken into account the fact that several hospitals in Stockholm reported a deficit in 2014. They note that the County Council has an active action programme to address the rate of cost increase within Stockholm County Council, which is expected to increase efficiency between now and 2018.