S&P Strips Finland Of AAA Rating, Cites Weak Outlook

Finland lost its AAA credit rating from Standard & Poor's Ratings Services on Friday. The ratings firm cut the Nordic country's long-term rating one notch to AA-plus, citing a deterioration in economic growth prospects that could complicate efforts to consolidate Finland's public finances and cut public debt. S&P said Finland's economy has lagged most peers, with gross domestic product on track to shrink in real terms in 2014 for a third straight year. S&P emphasized Finland's underperformance on the export front, calling it a "sign of lower competitiveness." Finland is also vulnerable to neighboring Russia's economic weakness and, more significantly, to any slowdown of economic activity in the eurozone, the ratings firm said. The euro remained around 0.5% lower versus the dollar at $1.2625.