Quotes from Hesse's Finance Minister, Professor Dr. R. Alexander Lorz:
Hesse earns top AAA credit rating for fiscal discipline and stability
"These consistently strong credit ratings are by no means a given, which makes them all the more gratifying. After years of economic stagnation in Germany, public budgets are under immense pressure. On top of that, we now face the strains of the Iran conflict. Yet despite these enormous challenges, Hesse's creditworthiness in financial markets remains solid. This literally pays off for the stateāwe benefit from comparatively low interest rates."
"The ratings affirm our fiscal policy approach: We use taxpayers' money strategically for essential and forward-looking investments while maintaining sustainable savings."
Excerpts from Standard & Poor's rating report (translated from the original English):
"The stable outlook reflects our assessment that the state of Hesse will maintain budgetary discipline, particularly in operational, personnel, and transfer expenditures, to counter persistent fiscal pressures. We expect the state to report structuralābut limitedādeficits while staying within constitutional limits, a practice now permitted under recently relaxed budgetary rules for German states. Nevertheless, Hesse's debt burden relative to operating revenue is likely to decline gradually, as net financing needs shrink and revenue growth more than offsets them."
"Our ratings for Hesse account for various current fiscal policy challenges, the state's political decisions, and recent changes to the institutional framework for regional administrations in Germany. We note that the war in the Middle East could impact tax revenue growth. While we still anticipate structural improvements in the budgetary position, these may now be more modest or delayed."
Excerpts from Scope's rating report (translated from the original English):
"The AAA/Stable rating for the state of Hesse also reflects the following key credit strengths:
i) sound fiscal performance and prudent financial policies, underpinned by a strong commitment to the state's debt brake;
ii) conservative debt and liquidity management, supported by excellent market access and a favorable debt profile;
iii) limited contingent liabilities and a well-funded pension system for civil servants; and
iv) above-average revenue flexibility."
