Despite the difficult financial situation, Bavaria received the best rating from the rating agency Standard & Poor’s. “Bavaria stands for solid fiscal policy – we always weigh all expenditure and income carefully. Despite the crisis management in recent years, the creditworthiness of the Free State has been consistently awarded the highest rating by a total of three rating agencies,” said Finance Minister Albert Füracker (CSU) on Tuesday in Munich. The agency had previously rated Bavaria’s financial policy with the top rating “AAA/A-1+” with a stable outlook.
Füracker was all the more pleased about the good rating, since the Free State of Bavaria has also faced massive challenges in recent years due to the corona pandemic and high energy prices. “In Bavaria, we will continue to budget soundly and responsibly – especially in the interests of future generations. Reliable planning and efficient budget execution continue to form the basis of Bavarian financial policy,” stressed Füracker.
According to the rating report, the top rating is mainly due to excellent budget management, it said. “This forward-looking budget management, in conjunction with the solid institutional framework prevailing in Bavaria and the outstanding strength of domestic companies, also compensates in the assessment for the noticeable, but essential, new borrowing to deal with the corona pandemic.”
Financial ratings express how creditworthy a company or country is. The better the rating, the more creditworthy the person being rated is. This means that, from the agency’s point of view, a good rating makes it more likely that loans granted can be repaid without problems. In practice, this also leads to better conditions for loans.