The credit rating agency Moody’s believes that the new municipal law, proposed to the Finnish government on November 27th would be credit positive for Municipality Finance (MuniFin).
The new law would require municipalities to report their financial performance and to balance their budgets on a group basis, including the companies they own. The proposed law would require municipalities to close consolidated deficits within four years.
Moody’s estimates that MuniFin would benefit from the enhanced disclose and deficit closure rules. MuniFin is Finland’s only lender focused on the financing and financial risk management of municipalities and municipally owned corporations.
Moody’s long-term credit rating for MuniFin is Aaa stable.
Published every Monday and Thursday, Moody’s Credit Outlook provides its credit implications of current events. The comment on Finland’s proposed municipal law and its effects on MuniFin were published on December 4th.