Rating agency certifies Saxony's top credit rating

In its latest report, the rating agency gives a positive assessment of the state government's continued efforts to make savings in order to overcome the structural budget deficit for the 2027/2028 double budget. The analysts acknowledge that the minority government is seeking constructive cooperation with the opposition. The funds granted by the federal government from the special infrastructure and climate protection fund are also having a positive impact. The low level of debt compared to other states is also praised.

Last year, the rating agency S&P already awarded the Free State of Saxony the best possible credit rating. However, the outlook at that time was considered negative. Last year, the very good credit rating was still accompanied by a warning and expectation that the existing structural budget deficits would be tackled decisively. If this was not successful, the rating agency announced a possible downgrade of the credit rating. This has not happened; on the contrary, the negative outlook has been lifted and raised to "stable."

Credit ratings from rating agencies have a major impact on the interest rates at which a country can finance itself on the capital market. The AAA rating is the highest credit rating awarded by S&P. A federal state with this rating is classified as particularly creditworthy and financially stable, which means a very low risk of default on loans. 

A rating is based on an analysis of a wealth of data. Rating agencies use and evaluate information on, among other things, the economic situation and its development, the structural situation and development of the national budget, financial management, and a country's debt.