Scope Ratings reviews its ratings either yearly, or at least every six months in the case of sovereign, sub-sovereign and supranational issuers. Monitoring reviews are unrelated to the calendar that outlines public finance rating actions.

Scope performs monitoring reviews to determine whether outstanding ratings remain proportionate. Monitoring reviews are conducted either by performing a portfolio review in terms of the applicable methodology, latest developments, and the rated entity’s financial and operational aspects relative to similarly rated peers; or through targeted reviews on an individual credit. Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for Norway (AAA/Stable; S-1+/Stable) on 2 July 2020. This monitoring note does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

Scope’s assignment of Norway’s AAA ratings reflects the country’s sizeable dual fiscal and current account surpluses; a significant net public asset position rather than a net public debt position, driven by savings accumulated through the sovereign wealth fund, Government Pension Fund Global; and strong fiscal, monetary and financial governance institutions. Norway also benefits from still low public debt, issued only to finance capital expenditure, and institutional strengths as a mature economy with one of the world’s highest per capita income levels. Challenges include 2020’s sizeable, dual public health and oil price shocks, ongoing imbalances in property sectors, high household debt, and the difficult long-run transition to a non-commodity-dependent economy. The Stable Outlook reflects Scope’s assessment that the challenges Norway faces remain manageable given the country’s commensurate credit strengths.

The methodology applicable for the reviewed rating(s) and/or rating Outlook(s) (Public Finance and Sovereign Ratings, 21 April 2020) is available on https://www.scoperatings.com/#!methodology/list.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst: Dennis Shen, Director

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