Standard & Poor’s has again awarded its top rating of AAA and a stable outlook to Liechtenstein. The decision was based on the Principality’s stable budget, high financial reserves and positive income situation.
The rating agency Standard & Poor’s has again confirmed its top rating of AAA with a stable outlook for Liechtenstein as part of its routine half-yearly review of country ratings. This news was announced in a press release issued by the Principality.
According to the press release, Liechtenstein’s top rating was maintained above all due to its healthy financial situation with regard to public budgets. During difficult times, this represents a stabilizing factor. While the rating agency certainly expects that the economy in Liechtenstein will suffer a downturn as a result of the coronavirus pandemic, it highlights that the Principality is well positioned for the future owing to its high reserves and positive income situation.
Prime Minister Adrian Hasler was “very pleased” with the renewed confirmation of the top rating. While other countries have had to incur high levels of new debt to finance aid measures with the aim of mitigating the economic impact of the pandemic, Liechtenstein can expect “a positive result for its national accounts even in the current year and, where necessary, fall back on its existing reserves”, the press release states.