Region Stockholm maintains its strong credit rating of AA+ in the long term and A-1+ in the short term. This was announced by the independent credit rating agency Standard & Poor’s on 2 April.
“The continued assessment of Standard & Poor’s is that Region Stockholm will be able to cope with the financial challenges that arise in the wake of the COVID19 pandemic. The assessment is also that Region Stockholm has good financial leadership, strict budgetary discipline, a long history of balanced budgets, and continued stable future prospects. The combination of all these factors forms the basis of the high credit rating”, says Carina Lundberg Uudelepp, regional director of Region Stockholm.
“Thanks to a strong cash flow, which is partly attributable to several years of positive results, we have now also achieved a higher rating in one of the subcategories, which assesses Region Stockholm’s debt ratio. And with an overall high rating, the region has good opportunities to also finance the region’s future investments with good terms”, explains Katarina Holmgren, who is finance director and chair of AB SLL Internfinans, within Region Stockholm.
Although the pandemic has resulted in a temporary increase in unemployment, the region’s structural economic foundation remains strong, according to Standard and Poor’s.
Standard and Poor’s acknowledges that regions and municipalities are compensated by the state for extraordinary expenses related to COVID19, which relieves the budgetary pressures on Region Stockholm. However, it is less clear how the state will compensate for the demographic developments in the long term.
The assessment of Standard and Poor’s is that Region Stockholm’s debts and liquidity management is good functioning and underpinned by prudent and risk-minimizing financial policies”.
About the credit rating from Standard & Poor’s
Standard & Poor’s conducts a credit assessment twice per year, and submits a report once per year (in April) describing the credit rating. The credit rating agency Standard & Poor’s has for several years confirmed Region Stockholm’s high credit standing. Since 2007, Region Stockholm has had the second highest credit rating of AA+ in the long term. The short-term credit rating is the highest rating of A1+.