The Dutch sovereign rating “is well underpinned by the flexible and diverse economic competitiveness and the surplus of the country at international investment,” he stressed Fitch.
Similarly, the Dutch qualification “has benefited from the credit profile of domestic institutions, sound management of budgetary and political quorum on fiscal discipline,” he added.
Thus, despite the government’s fall in April, the minority coalition and the opposition managed to agree on a plan put deficit reduction, according to Fitch, the Netherlands in line with the commitments of the European Stability Pact.
The agency stresses the strength of the economy “despite the crisis in the eurozone and contributions to various programs of assistance to other partners in the EU in 2011.”
Fitch warns however that “a dramatic worsening of the crisis in the eurozone may have an adverse way around the small open Dutch economy and pressure on a downgrade of its rating,” said the statement.
The AAA rating “will not be inconsistent although it is expected that the deficit exceeds the 3% mark in Maastricht,” said Fitch.
And is that “Fitch is confident that additional consolidation measures will help reduce the deficit below 3 Dutch% by 2013″.
In addition, Fitch rates the Dutch banking system “solid” as it “is only partially exposed to other economies in the eurozone and financial risk framework.”
Category: Mutual Funds