Rating

Danish central government debt has – as one of few countries in the world – the highest possible credit rating (AAA/Aaa) with a stable outlook among the largest international credit rating agencies.


What does s a high credit rating mean?

The kingdom of Denmark has a low level of debt, a sound debt structure and a robust economy with a stable outlook. This results in an AAA-rating. The central government’s total financing costs are kept down as investors do not demand a premium for the risk they take on when buying Danish government bonds.

Why does the Kingdom of Denmark have a high credit rating?

This is because Danish government bonds are considered among the safest in the world. In the figure below, you can see the interest rates paid by different countries when borrowing money from their creditors. The figure shows that Denmark is among the countries worldwide that pay least to borrow money.

The credit rating agencies particularly highlight that the way in which the economic policy has been designed makes the danish economy resilient to potential economic downturns and future structural imbalances. Denmark has a long tradition of having a high degree of fiscal policy discipline with a well-managed public budget. This has led to a low level of debt and a robust composition of government debt.

Government Debt Management at Danmarks Nationalbank is responsible for managing central government borrowing and debt, as well as also having ongoing contact with credit rating agencies. 

Countries with a high credit rating pay less to borrow

The Kingdom of Denmark's credit rating 

 

Domestic debt       

Foreign debt     

Outlook 

Most recently confirmed

 

Long

Short

Long

Short

 

 

Standard & Poor’s

AAA

A-1+

AAA

A-1+

Stable

09-Feb-2024

Fitch Ratings

AAA

F1+

AAA

F1+

Stable

03-Nov-2023

Moody’s

Aaa

P-1

Aaa

P-1

Stable

06-Feb-2024

DBRS Rating

AAA

R-1 (high)

AAA

R-1 (high)

Stable

17-Nov-2023

Scope Ratings

AAA

S-1+

AAA

S-1+

Stable

29-Sep-2023

 

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