Region Stockholm maintains its strong credit rating of AA+ in the long term and A-1+ in the short term. This was announced by independent credit rating agency Standard & Poor's on 2 October.
“Standard & Poor’s has made the assessment that Region Stockholm will be able to handle the financial challenges in the wake of the Covid-19 pandemic, even though it has been the greatest challenge the region has faced in modern times. Region Stockholm has a long history of strong financial performances. The assessment is also that Region Stockholm has a solid financial management and these factors combined are the reason for the high credit rating,” says Carina Lundberg Uudelepp, Regional Chief Executive in Region Stockholm.
“Region Stockholm has the requisites to continue managing its finances responsibly. And with this high rating, the region also has excellent opportunities to continue getting good terms for the funding of the region's upcoming investments,” says Katarina Holmgren, Chief Financial Officer and chairman of the board of AB SLL Internfinans within Region Stockholm.
Regarding the credit rating from Standard & Poor’s
Standard & Poor's issues its credit rating twice per year and gave a report in April 2020 describing that rating. No new report will be given in the autumn as the credit rating remains unchanged. In its April report, the agency made the assessment that the unemployment rate in the region will increase in the short term due to Covid-19, but that the recuperation of the job market will be relatively quick once the situation has improved. Standard and Poor's also noted that regions and municipalities will be compensated by the central government for any extraordinary expenditure related to Covid-19, which lessens the economic pressure on Region Stockholm. Other factors considered by Standard and Poor's were the liquidity management as well as the stable and sound economic development in Stockholm County.
The basic scenario in the April analysis by Standard & Poor’scovers the years 2020-2022. A stable operative cashflow and low capital costs mean that the debt ratio for Region Stockholm is assessed to decrease. The agency makes the assessment that, despite the uncertainty surrounding Covid-19 and the negative effects on Region Stockholm from changes in the system for municipal economic equalisation, Region Stockholm’s finances will remain balanced in 2020–2022.
About the credit rating
The credit rating agency Standard & Poor’s has for several years confirmed Region Stockholm’s high credit rating. Since 2007, Region Stockholm has the second highest credit rating of AA+ in the long term. The short-term credit rating is the highest rating of A-1+.