On Sept. 25, 2006, 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. The general government is expected to continue posting significant fiscal surpluses, equivalent to 1%-2% of GDP in the medium to long term (excluding flows to and from the defined contribution pension system). Having peaked at 80% of GDP in 1993, general government debt is expected to fall to an estimated 32% of GDP by year-end 2006 and is forecast to continue declining steadily in the medium term. The sustained decline in the public debt burden, coupled with a robust pension system
