Scope Ratings GmbH (Scope) has affirmed the Malta’s long-term issuer and senior unsecured debt ratings at A+ in both local and foreign currency and maintained the Stable Outlook. In addition, the short-term issuer rating has been affirmed at S-1+ in both local and foreign currency with a Stable Outlook.
Summary and Outlook
The affirmation of Malta’s A+ rating reflects the country’s:
- Strong growth potential.
- Effective and prudent fiscal management, supported by strong growth and reflected in its good record of fiscal consolidation.
- Robust external position, with a large net international creditor position, further bolstered by euro area membership.
The Stable Outlook reflects Scope’s view that Malta’s risks over the next 12 to 18 months are well balanced.
The ratings/Outlooks could be upgraded if, individually or collectively:
i) the continued implementation of structural reforms supports greater diversification into higher-value-added activities, bolstering the sustainability of Malta’s growth model and resilience to shocks and/or;
ii) fiscal discipline is maintained, returning the public debt-to-GDP ratio to a firm downward trajectory.
Source – Scope Ratings