S&P downgrades Finland to AA+ from AAA

S&P downgrades Finland to AA+ from AAA.
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S&P downgrades Finland to AA+ from AAA.

Standard & Poor's downgraded Finland's sovereign debt rating to AA+ from AAA on Friday, citing economic weak development.

It also revised the country's outlook to "stable" from "negative."

The ratings agency said Finland could experience "protracted stagnation" due to its aging population, shrinking workforce and weakening external demand.

In addition, S&P cited the country's dwindling market share in the global IT industry and its relatively rigid labor market as contributing factors.

Finland, which has an economy of about $256 billion, has struggled to consolidate its public finances and reduce public debt, the agency said. It expects the country's deficit to widen to 2.7 percent of its gross domestic product in 2014.