The Netherlands is regarded as being one of the most attractive countries when it comes to foreign investments due to its stable economy and political situation. The Netherlands has managed to maintain its high rankings in a very unstable environment, considering that international agencies have assigned very few good ratings to other European countries.
Adding the fact that the Netherlands is a country that has very good relationships with other European countries, such as Germany and France, the Netherlands has attracted many investors in the past years.
Netherlands’ credit rating according to rating agencies
In 2015, the Netherlands started improving its credit rating after being previously downgraded in 2014 to Aaa, from AAA. The downgrade was caused by weak growth prospects. Nevertheless, the country’s economy maintained its stability and foreign businesses in the Netherlands were not influenced in a negative way.
In 2016, the country managed to affirm its credit rating once again, moving from negative to stable. This was possible because of its highly competitive economy, a very high debt affordability and a strong record of debt reduction. In addition, the change of the Netherlands’ credit rating is attributed to the fact that the government balance sheet will be influenced by further collective support to other EU countries. Another reason stated by Moody's is that the Netherlands shows signs of own domestic vulnerabilities in the growth outlook.
If you need more information regarding starting a business in the Netherlands or if you want to open a company in the Netherlands, you can request the services provided by our company registration experts. They can guide you through the company formation procedure in the Netherlands.
The video below also shows the credit ratings the Netherlands received in the last period:
Future predictions on the Dutch economy
In 2016, the Netherlands maintained its triple-A rating, largely due to its economic recovery. Credit agency Standard & Poor’s lifted Netherland’s credit rating last year and highlighted the fact that the country’s upgrade was caused by a growing domestic demand, an increase in real disposable income and an increase in employment and investments.
Experts expect that the Dutch economy will continue to have an approximate 2% growth rate. The credit ratings for Netherlands in 2016 and 2017 expressed by the most important credit rating agencies were as follows:
-S&P credit rating: AAA/A-1+, stable;
-Moody’s credit rating: Aaa, stable;
-Fitch credit rating: AAA, stable
The overall credit rating for the Netherlands is stable and reflects a good economic recovery in the country. The benefits of a good credit rating are more foreign investments, as entrepreneurs will rely on the scores given by credit rating agencies when choosing to open a company in the Netherlands. A good score means easy access to funds and also access to funds from outside the country.
The “AAA” investment grades awarded by S&P and Fitch mean that the Netherlands has the capacity to meet its financial commitments and that the country has quality companies that are reliable and stable. The “Aaa” rating awarded by Moody’s highlights the fact that the Netherlands has the lowest credit risk and the best ability to repay short-term debt.
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