Despite the more difficult financial situation in Bavaria as a result of the Corona crisis, Bavaria was once again the only federal state to receive the top rating from the rating agency Standard & Poor’s. “The financial markets’ confidence in the soundness of Bavaria’s financial and budgetary policy is unbroken – despite the challenging circumstances caused by the Corona crisis,” said Finance Minister Albert Füracker (CSU) on Tuesday. The agency had previously rated Bavaria’s financial policy with the top rating “AAA/A-1+” with a stable outlook.
“Good fiscal policy means carefully and proactively weighing up the timing and scope of expenditure and income,” said Füracker. According to Füracker, the fact that the state’s creditworthiness was given the highest possible rating by a total of three agencies proves that previous decisions were correct.
According to the rating report, the top rating is mainly due to sustainable financial management and the high level of liquidity reserves. This forward-looking budget management, combined with the solid institutional framework prevailing in Bavaria and the outstanding strength of domestic companies, also compensates in the assessment for the noticeable increase in borrowing, which was essential in connection with the corona pandemic. In order to cope with the pandemic, tax revenue had collapsed massively in Bavaria, and the Free State had to take on new debt for the first time in recent years.