Now, the independent credit rating institute Standard & Poor’s has yet again announced that Stockholm County Council is keeping its high credit rating.
Stockholm County Council is maintaining its AA+ credit rating, which is the second-highest long-term credit rating. And for the short-term credit rating, the County Council yet again keeps the highest rating 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 in the autumn, however. This was the case on this occasion; therefore links are included to the report from April and Standard & Poor’s publication calendar.
- I see the continued high credit rating from Standard & Poor’s as a clear sign that we are doing a lot right in the County Council. The high credit rating means that we will also continue to have opportunities to finance investments at good terms, says Frida Korneliusson, MD for AB Stockholms Läns Landsting Internfinans.
- But we can’t rest on our laurels with today’s rating in hand, and have to continue the development work already begun that aims for broader initiatives to control the rate of cost increases.
In its report from April, 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. They also take into account the action programmes that have been adopted and are now being implemented to control the rate of cost increase.
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, which will increase the level of debt in relation to revenue.
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.