Vestland County Council earns top-tier AAA rating from Nordic Credit Rating

Vestland County Council has been assigned an AAA long-term issuer rating with a Stable outlook and an N1 short-term issuer rating by Nordic Credit Rating. The senior unsecured issue rating also received AAA, reflecting the county’s strong creditworthiness. This top-tier rating is supported by Vestland's above-average income levels, sound demographic profile with low elderly dependency, and robust operating margins.

The rating rationale highlights Vestland's diversified export-oriented economy, particularly in maritime, seafood, and energy sectors, and its strategic position as Norway's leading export region. Strong institutional stability, governance, and predictable revenue support from the central government also contribute to its exceptional credit standing. Nordic Credit Rating expects Vestland to maintain strong operating margins and balanced budgets, despite projected debt growth to 107% by 2027 due to significant infrastructure investments.

Vestland's financial reserves, while decreasing to 9% of operating revenue in 2024, are anticipated to remain within its 5-10% target. The county's gross debt burden, at 96% of operating income in 2024, is in line with the county average and is expected to increase due to ongoing high investment needs. However, a strong cash balance and well-managed debt maturities mitigate refinancing risk, with 24% of debt maturing by November 2025.