On Aug. 28, 2008, Standard&Poor's Ratings Services affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the Kingdom of Denmark. The outlook is stable. The ratings on Denmark reflect policymakers' longstanding commitment to fiscal discipline and the country's rich and diversified economy. We expect the general government, which posted a 4.8% of GDP surplus in 2007, to continue posting significant fiscal surpluses of above 2% of GDP in the medium term. Ongoing tax cuts and initiatives to improve the quality of public services in Denmark may, however, put some strain on public finances over the medium-to-longer term given that the strong revenue increases of recent years may not endure. Having peaked at 80% of GDP in
