Ratings On Denmark Affirmed At 'AAA/A-1+'; Outlook Stable

OVERVIEW The Kingdom of Denmark has mature political and institutional frameworks that have promoted fiscal discipline and a moderate debt burden, as well as an open and prosperous economy. We are affirming our 'AAA/A-1+' long- and short-term sovereign credit ratings on Denmark. The outlook is stable, reflecting our expectation that Denmark's key economic, fiscal, external, and monetary credit measures would withstand most foreseeable shocks. RATING ACTION On Oct. 3, 2014, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' long- and short-term foreign and local currency sovereign credit ratings on Denmark. The outlook is stable. RATIONALE The ratings on Denmark reflect our view of its mature political and institutional frameworks, which have promoted fiscal discipline and a moderate debt burden, as

...Key Rating Factors Institutional and Governance Effectiveness Strength Economic Structure and Growth Strength External Liquidity and International Investment Position Neutral Fiscal Flexibility and Performance Strength Debt Burden Strength Monetary Flexibility Strength Standard & Poor's analysis of sovereign creditworthiness rests on its assessment and scoring of five key rating factors: (i) institutional and governance effectiveness; (ii) economic structure and growth prospects; (iii) external liquidity and international investment position; (iv) the average of government debt burden and fiscal flexibility and fiscal performance; and (v) monetary flexibility. Each of the factors is assessed on a continuum spanning from 1 (strongest) to 6 (weakest). Section V.B of Standard & Poor's "Sovereign Government Rating Methodology And Assumptions," published on June 24, 2013, summarizes how the various factors are combined to derive the sovereign foreign currency rating, while section V.C details...

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