Fitch affirms Netherlands' top 'AAA' credit rating

26th June 2012, Comments 0 comments

Fitch upheld on Tuesday the Netherlands' top 'AAA' credit rating, saying that despite the collapse of the government and fresh elections the country has a credible deficit reduction plan in place.

"This has eased concerns that there would be a prolonged period without a credible plan to ensure that the budget deficit is brought below 3 percent of GDP consistent with stabilising the government debt to GDP ratio," said Fitch, adding the rating had a stable outlook.

The austerity plan was pushed through the Dutch parliament in April after Prime Minister Mark Rutte's minority coalition reached an agreement with three opposition parties.

Rutte however had to call new elections for September 12.

Fitch said its stable outlook reflected its "assessment that the Netherlands 'AAA' status remains resilient to the eurozone crisis.

This was "despite the recent increase in policy risks, a weaker fiscal adjustment and the additional government debt incurred by the Dutch government's contribution to eurozone rescue funds and 'bail-out' programmes in 2011," Fitch said.

© 2012 AFP

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