Canton Aargau retains best rating
Standard & Poor's has confirmed the Canton of Aargau's AAA rating with a stable outlook. The international rating agency attests to the cantonal administration's prudent financial management. High liquidity reserves should be able to compensate for foreseeable deficits.
Standard & Poor’s gave the Canton of Aargau its first AAA rating with a stable outlook last December. Now the international rating agency has confirmed the canton’s top rating, informs the Department of Finance and Resources of the Canton of Aargau in a statement. According to it, the cantonal administration is attested prudent financial management.
“I am very pleased that the rating agency Standard & Poor’s has honoured the prudent financial policy and high budgetary discipline of recent years and has once again awarded the Canton of Aargau the highest possible rating,” Finance Director Markus Dieth is quoted as saying in the statement. “This in the knowledge of the high financial aid contribution to the Kantonsspital Aarau AG and the uncertain development of the distributions of the Swiss National Bank(SNB).”
Standard & Poor’s bases its assessment on the canton’s low debt and high liquidity reserves. According to the rating agency, the canton’s broadly diversified economic structure will also lead to rising tax revenues in the coming years. The available liquidity reserves are sufficient to offset foreseeable deficits.
A downgrade could occur if the canton weakens in its budget discipline and debt increases. “We want to confirm the AAA rating despite challenging framework conditions,” explains Dieth. For the finance director, this requires a continuation of the current financial policy. “This also means that the politically planned strategic projects and the necessary investments to strengthen Aargau as a residential and business location must be driven forward”.