Faroe Islands maintain credit rating from Moody’s at Aa2 with stable outlook

The Faroe Islands have maintained their credit rating from Moody’s, which stands at Aa2 with a stable outlook. This rating places the nation at the third-highest tier in Moody’s scale, which consists of 21 levels.

Malan Johansen, CEO of the national bank, described the news as positive. However, she warned that the situation could change, particularly if the construction of the South Sea Tunnel begins, as this would significantly increase the national debt and likely lead to a downgrade in the rating.

Johansen explained that traffic through the South Sea Tunnel would not solely finance the tunnel but would impact the national treasury as well. She also noted that the treasury could expect a rise in interest rates.

For more insights, listen to the interview conducted by J’pogvan Skeel Nolsøe with Malan Johansen on the radio news program.