Advanced, diversified and prosperous economy running persistent current account surpluses. Strong track record of political commitment to fiscal discipline and growth promoting macroeconomic policies. Relatively low government debt and deficit levels. Limited fiscal flexibility due to already very high taxation. Large external liquidity requirements driven by the financial sector. Aging population pressure on economic growth prospects and sustainability of public finances in the longer term. The ratings on Denmark are supported by our view of the government's longstanding commitment to fiscal discipline and growth-oriented macroeconomic policies. This commitment is reflected in the country's prosperous and diversified economy. We see Denmark's large external borrowing needs, relatively high stock of banking sector external debt, and aging population, as the main risks for
