Because of an effective system of legislation and regulation all Dutch municipalities are able to fulfil their financial obligations entirely and at all times. The financial relationship between central and local government in The Netherlands is structured in such a way, that the credit quality of Dutch municipalities is equal to that of the State of the Netherlands. The State of the Netherlands is rated AA+ by Standard & Poor′s (stable outlook), Aaa by Moody′s (negative outlook) and AAA by Fitch (negative outlook). Dutch municipalities are not rated individually. Loans to Dutch municipalities are 0% risk weighted by the Dutch central bank.
Publicationdate: 03 December 2013