A shrinking economy and a rising debt burden do not prevent credit rating agency Fitch from giving the Netherlands AAA status again, according to the latest rating from the credit rating agency on Friday.

The 'triple A' status is Fitch's highest possible score and means that the Netherlands is seen as 'very creditworthy'.

A high creditworthiness is important, because it lets investors know that the Dutch State will repay loans on time.

This trust allows the State to borrow money more cheaply.

Due to the corona crisis, the Dutch state has started to borrow more and spend more, which increases the debt burden.

After the second quarter, government debt was 55.6 percent of GDP, compared to 49.5 percent after the first three months of the year.

Fitch therefore expects government debt to rise further to even above levels justifying AAA status.

However, that is not a reason to lower the rating, says the credit rating agency.

"In the past, the Netherlands has shown that it can conduct good fiscal policy, which will stabilize the government debt and decrease when the pandemic is over," said the credit rating agency.

The credit rating agency sees that the Dutch economy is shrinking less sharply than the EU average and points to the "flexibility of the economy and the rapid policy implementation" as the reason for the smaller minus.

For this year, Fitch expects an economic contraction of 5.1 percent in the Netherlands, followed by a plus of 3.4 percent next year.

The economic level before the corona crisis will not be reached again until 2022, according to the credit rating agency.