S&P upgrades Finland’s rating outlook to stable

Standard & Poor’s said Monday it had upgraded the outlook on Finland’s top AAA credit rating from negative to stable, saying the impact from the eurozone crisis was contained.

“The outlook revision reflects our view that the risks to Finland’s financial, economic, and policymaking environment emanating from the eurozone crisis have remained contained and we expect that this will continue to be the case throughout 2013,” said S&P in a statement.

It added that the Finnish government appears committed to undertaking policies that should allow the economy to grow above one percent in the medium term.

However, S&P said that it expected the Finnish economy to post only sluggish growth of 0.5 percent in 2013, after stagnating in 2012.

The stable outlook reflects that S&P believes there is a low risk of changes in policy or the wider economy that would cause it to lower the country’s rating.

S&P also upgraded the outlook on Luxembourg’s AAA rating to stable, saying that the country’s strong finances and stable political environment are sufficient to outweigh risks to its economy.

It judged that the country’s large financial services industry, which accounts for over a third of its economy, “should be resilient to potential regulatory change” from its EU partners.