DBRS Confirms the Republic of Malta’s ‘A (high)’ Rating with a Stable Trend
Malta welcomes DBRS’ latest A (high) rating with a stable trend, reflecting its remarkable ability to continue outperforming the EU Average Growth Rates through Broad-based Expansion, its strong external position and low reliance on external financing, its favourable public debt structure, and its households’ strong financial position.
The Maltese economy remains one of the euro area’s top growth performers, with outward-facing sectors such as tourism, gaming, financial and business services being key contributors to Malta’s outperformance.
Benefitting from the strong Malta citizenship by investment programme proceeds and tax-rich economic growth, the fiscal surplus reached 3.9% of GDP in 2017, surpassing its target. Against this backdrop, the government debt-to-GDP ratio is on a downward trend, dropping 5.5 percentage points, declining to 50.7% in 2017, one of the lowest in the EU. DBRS considers appropriate the authorities’ intention to comply with the government’s Medium-Term Objective to continue registering a surplus, net of the IIP.