The credit rating of Danish companies is at its highest level in several years. Turnaround strategies involving trimming down and reducing the size of organisations have created more robust, cost-effective businesses.
The number of bankruptcies is also declining. The improvements are considered clear signals that the health of the Danish economy is improving.
“The creditworthiness of Danish companies is markedly improved,” credit specialist Martin Stabell from Bisnode Credit told Jyllands-Posten newspaper. “Things started to turn around in the latter half of 2013 and continued this year.”
Smaller and stronger
Statistics from the credit bureau revealed that the number of companies with AAA and AA credit ratings has risen steadily. Nearly 38 percent of companies are now in the highest categories, up from 28 percent four years ago.
“In recent years, companies have been focusing on cost,” said Stabell. "They have trimmed the fat, turned around, and put themselves back in the black.”
READ MORE: Rating agencies praise Danish economic policy
Danish business organisation Dansk Erhverv said that while many businesses have weathered a tough storm, some weren’t so lucky.
“An amazing number of companies have been through tough changes,” Dansk Erhverv spokesperson Søren Friis Larsen told Jyllands-Posten. “A majority handled the challenges well, but there are also some who have disappeared.”
