ARTICLE
26 March 2018

S&P Reaffirms ‘A-/A-2' Ratings With Positive Outlook

FM
Finance Malta

Contributor

Finance Malta is a non-profit public-private initiative set up to promote Malta as an international financial centre, both within, as well as outside Malta. It brings together, and harnesses, the resources of the industry and government, to ensure Malta maintains a modern and effective legal, regulatory, and fiscal framework in which the financial services sector can continue to grow and prosper. The Board of Governors, together with the founding associations: The Malta Funds Asset Servicing Association, the Malta Bankers Association, the Malta Insurance Association, the Association of Insurance Brokers, the Malta Insurance Managers Association, the Institute of Financial Services Practitioners; its members and staff are all committed to promote Malta as an innovative international.
A Standard and Poor's (S&P) credit rating report confirms Malta's ‘A-/A-2' long-term and short-term ratings and reaffirms the outlook of the Maltese economy as ‘positive'.
Malta Strategy

A Standard and Poor's (S&P) credit rating report confirms Malta's 'A-/A-2' long-term and short-term ratings and reaffirms the outlook of the Maltese economy as 'positive'. 

The 'positive' rating outlook is supported by the expected continuing strong growth performance coupled with consistent current account surpluses, together with the improving budgetary position and fiscal management. 

The report also outlines that the Maltese economy has enjoyed another year of strong, economic expansion driven by net exports. Investments in energy and logistics were also important contributors.

S&P notes that the structural shifts in the economy have created new employment opportunities and the unemployment rate declined to 4 per cent in 2017. Reforms made by the government have improved participation rates, particularly among women. 

The report acknowledges that the fast pace of growth of the new economic sectors and the implementation of recommendations from the spending reviews have allowed a consolidation of public finances. This led to the narrowing of the budget deficit leading to a surplus, and the reduction of the general government debt. 

Minister for Finance Edward Scicluna comments: "I am pleased to welcome the comments passed by rating agencies since the ensuing recommendations help us in our stride to continue having a sustainable economy. Likewise, we will also continue to strengthen our regulatory institutions in their fight against money laundering".

S&P anticipates that the government's strategy and policymaking will remain geared towards further fiscal consolidation. 

The report highlights that the positive outlook indicates that the ratings could be raised if Malta maintains its economic growth and fiscal performance.

Source: PRESS RELEASE BY THE MINISTRY FOR FINANCE

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More