On Sept. 26, 2007, 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, which posted a 4.7% of GDP surplus in 2006, is expected to continue posting significant fiscal surpluses, above 2% of GDP in the medium term (excluding flows to and from the defined contribution pension system). The recently announced tax cuts and initiatives to improve the quality of public services in Denmark, however, may in the medium to long term put some strain on public finances, given that the strong revenue increases in recent years may not remain as
