Denmark “able to meet ageing challenge” - S&P
DENMARK – Ratings agency Standard & Poor’s says Denmark has “ample” fiscal flexibility to meet the demands of an ageing population.
“The sustained decline in the public debt burden, coupled with a robust pension system, provide ample fiscal flexibility to meet the challenge of an aging population,” S&P said in a research note.
S&P reaffirmed its 'AAA/A-1+' ratings on the country, adding that that the outlook is stable.
"The ratings on Denmark reflect its enviable track record of macroeconomic stability, underpinned by prudent fiscal management and structural reforms," said credit analyst David Cooling.
S&P said Denmark’s commitment to fiscal discipline remains “robust”. Government debt is forecast to decline to 42% of gross domestic product by the end of 2002 and to 37% of GDP by the end of 2005.
It added: “Denmark's strong macroeconomic policy record, wealthy and resilient economy, and tight integration into the European economy, outweigh the inherent vulnerabilities posed by its comparatively small size and openness.”