Switzerland's Rating for Investments

Swiss credit rating in AAA, the highest possible indicator awarded by rating agencies. This means entrepreneurs looking to open Swiss companies can rest assured regarding the country's investments risks.
Victor Lafarge
03.12.2023
The first step any investor should undertake, no matter where they are investing, is taking a look at a country's credit rating. A number of businesses around the world do annually and bi-annually credit checks for a number of countries and these checks normally give information on how well a nation can repay their debts.

In Switzerland, there are a number of different government and private frameworks which are annually assessed to determine their credit scores. This means that you can find a countries 'risk level' and make assumptions and decisions based on that.

This risk level is important to know as it factors in a number of things which may also affect an investment business. Factors such as political stability, economic growth or recession as well as its' GDP and a number of other factors. You can find these types of ratings from globally respected agencies such as Standards & Poor's as well as Moodys and Fitch.

The Swiss Rating

Switzerland is normally annually rated as a AAA nation. This means that Switzerland offers an extremely stable, growing economy with limited economic risk factors for investors who are planning on establishing investment companies in Switzerland.

Awarding a nation a AAA credit rating is not uncommon amongst developed nations, but with that being said, it is not an easy rating to receive. Countless economic requirements must be consistently met, as well as an economic 'show of force' to prove that the nation is able to meet all economic commitments which include debt repayment and borrowing information.

Fitch revealed in 2014 that Switzerland boasts such a resilient and powerful economy that it was deserving of an above-AAA rating, so the agency extended this rating to include the abridgement, "Switzerland is a highly advanced, well diversified and wealthy economy with strong governance and a track record of sound economic policy," further proving the nations immense economic stability. Switzerland's economy almost entirely bypassed the 2009 Global Financial Crisis, along with the Eurozone Crisis and rather than shrinking, grew against all odds.

One of the leading reasons Switzerland's economic stability is so praised is that its government takes stringent measures to ensure all economic activity is closely monitored and regulated. The nation's government places such a high focus on making its country a great place for investors that it is constantly working to remove any signs of risk or weak laws and regulations which may allow for 'cracks' to grow in the economy.

On top of this, allowing each municipality to self-govern means that there are 3 layers of economic stability in Switzerland, each of which is more powerful and stable than the last. Merging all of these layers together creates a sound and almost entirely recession-resistant economy.

Finally, as Switzerland provided investors with an entirely stable and loss-free economy during the Global Financial Crisis, it solidified its place in the world as the safest haven for investors available. You can speak with our business development consultants for more information on how to establish a company in Switzerland's stable and secure economy.

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