Stockholm County Council is keeping its high AA+ long-term credit rating and A-1+ short-term credit rating, according to the independent credit rating institute Standard & Poor’s.
Standard & Poor's performs a credit evaluation of the County Council twice a year. Stockholm County Council maintains its AA+ credit rating, which is the second-highest long-term credit rating. The short-term rating is once again the highest possible credit rating of A-1+.
"The high credit rating from Standard & Poor's enables us to finance investments at good terms. Stockholm is a metropolitan region with strong growth, and active labour market with growing revenues. However, a growing region also faces challenges when an increased number of people seek care and more people travel by public transport. Challenges such as increased costs and new demands for better service. To keep a high credit rating, the County Council also has to control the rate of cost increase," says Frida Korneliusson, CEO for AB Stockholms Läns Landsting Internfinans.
The credit rating institute confirms that the County Council has well-balanced finances and a strong financial management, which contributes positively to the high credit rating. Other factors that Standard and Poor's weighs in are the County Council's strong liquidity management and Stockholm's good, stable economic development.
Standard & Poor's analysis extends up to the end of 2020 in a base scenario. In its credit assessment, the institute has taken into account the County Council's increased investments in health and medical care and public transport. The credit rating institute confirms that Stockholm's strong economy benefits Stockholm County Council.
The credit rating institute has also taken into account the fact that several hospitals in Stockholm reported a deficit. 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 the end of 2020.