Fitch Ratings has this month affirmed Malta's Long-term foreign and local currency Issuer Default Rating (IDRs) at 'A'.
The ratings agency said the affirmation and the stable outlook reflected the following key rating drivers: "The Maltese economy is on the road to recovery. In 2013 the economy grew by 2.4%, better than 2012 (0.9%) and higher than the eurozone average (negative 0.4%), Fitch expects Malta's GDP growth to continue outperforming the eurozone average in 2014-15.
At 6.5% the unemployment rate is in line with the 'A' median and well below the eurozone average, while the employment rate has risen, underpinned by the increasing female labour market participation rate.
Focusing on the financial services industry, Fitch expects the banking sector's performance to remain resilient. Moreover it assumes that "in case of need, the government of Malta would be predisposed towards supporting the core domestic banks, which are systemically important".
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