The ratings on the Kingdom of 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 1993, general government debt is expected to fall to an estimated 20% of GDP by year-end 2008 and is forecast to continue declining steadily in
