Moody’s keeps Faroe Islands rating at Aa2

Moody’s has kept the Faroe Islands’ rating at Aa2 with a stable outlook, Kringvarp Føroya reports, citing information from Landsbankin.

Moody’s representatives visited the Faroe Islands in June and met with the government, the opposition and Landsbankin.

The rating measures how well a country is positioned to repay its debt. Moody’s has a 21-level rating scale, and Ireland has the same rating as the Faroe Islands.

Among the reasons given for the rating are the Faroe Islands’ financial autonomy, substantial liquidity, including a minimum deposit of 4.2 billion kroner, strong operating results before investments and relatively low debt.

Moody’s also notes that the population is growing, that there is a need for investment and that work is under way on an undersea tunnel to Suðuroy. However, the tunnel is not mentioned as affecting the credit rating.