Rating agency S&P downgrades Baden-Württemberg slightly

D.he rating agency Standard & Poor’s (S&P) has slightly downgraded Baden-Württemberg’s creditworthiness to AA + with a stable outlook. The state had previously been rated AAA, as the Ministry of Finance announced on Saturday. S&P made it clear that this was due to the effects of the corona pandemic and not to structural problems.

Finance Minister Edith Sitzmann (Greens) is convinced that it was important to do everything to protect health and to mitigate the economic effects of the corona pandemic through additional expenditure. You give companies the funds they urgently need by deferring tax payments. “If companies can get going again after the crisis, tax revenues will support the budget again. It is therefore right to act counter-cyclically, even if it puts a strain on the budget. “

In the categories of institutional framework, financial management, economic strength and liquidity situation, the rating agency continued to give Baden-Württemberg the best rating, stressed the minister. “Even with an AA + credit rating, we will continue to be able to take out loans on the financial markets without restrictions.”

Ratings usually determine the conditions under which money can be borrowed on the capital market: the better the rating, the lower the interest rates that are usually charged.

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