Moody’s Investors Service Affirms Malta’s ‘A3’ Credit Rating with a Positive Outlook
Another A ranking in quick succession! Moody’s Investors Service affirmed Malta’s A3 credit rating with a positive outlook.
Malta’s recent track record revealed a strong economic growth, an elevated per-capita income and very high scores in terms of global competitiveness. While its small size and openness make it susceptible to external shocks, Malta can weather such storms due to the high level of competitiveness as well as elevated wealth levels.
Together with Malta’s fiscal consolidation efforts, which are bearing fruit as the fiscal surplus is expected to be around 2.5% in 2018 and 2019, all of this will continue to contribute towards a rapid reduction of Malta’s debt-to-GDP ratio.
Malta’s economic growth is expected to moderate from recent highs, but it will remain strong in both 2018 and 2019.
Moody’s points out that it will upgrade the rating for Malta to A2 if the improvement in fiscal strength is sustained.