The ratings on Denmark are supported by our view of the government's longstanding commitment to fiscal discipline and growth-oriented macroeconomic policies. This commitment is reflected in the country's prosperous and diversified economy. We see Denmark's large external borrowing needs, relatively high stock of banking sector external debt, and aging population, as the main risks for the ratings. Danish governments have a strong track record of prudent macroeconomic and fiscal policies. Between 2004 and 2008, Denmark operated significant budget surpluses of 4% of GDP on average. These accumulated past savings provided the authorities with the necessary buffer to finance fiscal stimulus during 2009-2011, when the budget shifted into a deficit of more than 3% of GDP. As the economy recovers, we
