Wednesday, August 21, 2013 - 07:01
Fitch Rates Netherlands AAA
Netherlands still holds the highest credit rating from rating agency Fitch. The valuation indicates that the Netherlands' has a strong underlying economy, institutions and credit, announced Fitch on Tuesday. Netherlands, was rated AAA by Fitch and the other two major credit rating companies. But all three companies point out that the Netherlands for some time has a 'negative outlook'. That means that there is a real possibility of an impairment of the assessment of the national debt. Fitch says also that the expectation remains negative, due to the ‘deteriorating debt dynamics issue’ and ‘ongoing economic recession’. Fitch expects that the Dutch economy shrinks 1.3 percent this year and will be zero over 2014. An economic recovery in the eurozone does provide space for "a slightly positive development" says the rating company. The Central Planning Bureau (CPB) predicts a shrinking for this year by 1.25 percent, followed by a growth of 0.75 percent next year. The rating agency sees still further deterioration of the debt, which could peak in 2018. Fitch notes in this regard that ‘the deteriorating dynamics around the debt still remains within the AAA-tolerance’. That could mean that the company has no plans in the near future to depreciate The Dutch credit rating. Credit rating agency Moody's said Monday that an impairment of the Dutch credit position will not move at short notice. Moody's is currently assumed that the debt of the Dutch government will go down within 3 to 4 years. If that expectation is to be adjusted, a depreciation of the Dutch rating is possibly in sight, the rating agency reported.