...`AAA' Rating: Sweden's ratings reflect a wealthy and high value-added economy, with governance indicators in line with the `AAA' median. A long record of credible policy implementation, sound public finances and strong external metrics underpin macroeconomic and financial stability. Sound fundamentals include high domestic savings, a well-capitalised and profitable banking sector, and a large capital market. September Elections, Lengthy Coalition Talks: Sweden faces the prospect of lengthy coalition talks after 13 September parliamentary election saw the narrow defeat of the incumbent right- wing government. The narrow split between the left- and right-leaning parties, and the high number of potential collation partners after all eight established parliamentary parties retained representation, suggests that formation of a new government is unlikely to be swift. Policy Continuity: Fitch Ratings expects the economic framework to be unchanged, but return to the balanced budget target in the...
