YEREVAN, January 17. /ARKA/. Fitch Ratings has affirmed The Netherlands’ Long-term foreign and local currency Issuer Default Rating (IDRs) at ‘AAA’, the agency reports. The Outlooks are Negative. The issue ratings on The Netherlands’ unsecured foreign and local currency bonds have also been affirmed at ‘AAA’. The agency has also affirmed The Netherlands’ Short-term foreign-currency IDR at ‘F1+’ and the Country Ceiling at ‘AAA’.
The affirmation reflects the Netherlands’ strong underlying economic, institutional and credit fundamentals, including its consistent current account surpluses and positive net international investment position, as well as its strong financing flexibility. The Outlook remains Negative due to the weak GDP growth outlook. This will constrain fiscal consolidation, hampering public debt dynamics. The affirmation also reflects the following key rating drivers: The country’s flexible, diversified, high value-added and competitive economy benefits from strong domestic institutions, a track record of sound budgetary management and historically broad public and political consensus in support of fiscal discipline. –0–
