Fitch Slashes Finland’s Credit Rating to AA—Fiscal Woes Spark Downgrade

Finland just got a financial reality check. Fitch Ratings dropped the hammer, cutting the nation’s credit score from AA+ to AA. Blame? A shaky fiscal outlook and mounting debt—classic hallmarks of a government spending like crypto bulls in a bull market.

Why it matters: Lower ratings mean higher borrowing costs. Finland’s treasury might soon feel the squeeze—just as global markets wobble under inflation and rate hikes.

The irony? While traditional finance frets over balance sheets, Bitcoin’s scarcity model keeps looking smarter. No downgrades there.

Fitch Ratings downgraded Finland’s long-term foreign-currency issuer rating from “AA+” to “AA,” citing rising government debt and insufficient measures to control spending. Debt is expected to rise to 86.3% of GDP in 2025 and may exceed 90% by 2029, well above peer averages. Despite a €9 billion fiscal package, deficits are set to remain above 3% until 2027. Finland’s GDP growth lags Europe, unemployment has risen to 9.2%, and inflation is picking up. Still, strong pension assets and a solid banking sector provide some support.