Moody's confirms Sweden Aaa rating based on strong fiscal position

Investing.com - Moody’s today confirmed Sweden’s Aaa long-term issuer and senior unsecured bond ratings, maintaining a stable outlook. The rating agency also affirmed the country’s Prime-1 commercial paper rating and other debt ratings.

The agency stated that this confirmation reflects Sweden’s very strong economic, fiscal, and institutional fundamentals. Sweden benefits from a wealthy and highly diversified economy with strong resilience to shocks. Government debt is projected to remain low and stable at around 34% of GDP in 2025, and is expected to stay within the medium-term debt target range of 35% ± 5%.

Sweden’s real GDP growth reached 1.7% in 2025, after several years of below-potential performance. Moody’s expects growth to accelerate to 3.0% in 2026 due to robust private consumption, investment, and exports, then slow to 2.3% in 2027.

Geopolitical risks have increased due to Russia’s war against Ukraine (Ca stable) and the gradual disengagement of the United States (Aaa stable) as Europe’s security guarantor. Defense-related spending is rising and will mainly be financed through debt, leading to an increase in public debt, but it is still expected to remain low relative to peer countries.

The stable outlook reflects Moody’s expectation that, despite potential long-term geopolitical challenges, Sweden’s credit advantages will persist. The rating committee met on February 17, 2026, and concluded that the country’s economic fundamentals, institutional strength, fiscal position, and sensitivity to event risks have not undergone material changes.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.