Fitch Ratings on Friday affirmed its AAA rating on Finland's sovereign debt, but revised the outlook to negative, which means it could downgrade the rating over the longer term. The Triple A rating reflects the Nordic country's sound fiscal policy management and economic policies, the agency said in a note. Finland is one of just seven OECD countries to enjoy a government net asset position, and its debt-to-GDP ratio stood at 59% of GDP in 2014, well above the AAA median of 44.5%. However, the Finnish economy is adjusting to shocks in some key industries, including electronics, communications and forestry, at a time when its population is rapidly ageing. The country is also highly exposed to Russia, its neighbor and second-biggest export market. "The combination of cyclical weakness and structural difficulties is adversely affecting the public finances," Fitch analysts wrote.
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