New York based credit rating agency Moody’s has upgraded to Aa2 from Aa3 the long-term issuer rating of the Government of the Faroe Islands.
The rating agency points out that “the Faroe Islands’ fundamental credit profile benefits from the reduction of the construction risk associated to a large infrastructure project (i.e. the Tórshavn-Eysturoy sub-sea tunnel) which recently reached an important milestone.”
“In addition, credit fundamentals have continuously materially improved over the last years, as shown by better than expected economic and financial indicators, a trend which should continue going forward,” Moody’s noted.
Meanwhile, the outlook remains stable.
Moody‘s states that “the stable outlook reflects the sustainable financial performance and expected debt reduction trend, improved macroeconomic metrics and a stable relationship with the Kingdom of Denmark.”
Other countries that have a Aa2 credit rating are France and the United Kingdom.
The Aa2 is the third-highest level on the Moody’s rating table.