Malta’s high rating notes confirmed by Fitch

Fitch, well-known credit rating agency, has confirmed Malta’s high economic outcomes. The country’s ceiling was given the highest possible note, ‘AAA’.

What is more, senior unsecured foreign and local currency bonds issued by the state were rated at ‘A’ level. Long-term foreign and local currency Issuer Default Rating (IDRs) has been recognised with a very high ‘A’ note with stable outlooks as well. The short-term foreign currency IDR was described with also very good ‘F1’.

Edward Scicluna, Finance Minister, welcomed the assessment saying, that “the government’s confidence in its ability to continue attaining ambitious budgetary targets” is confirmed.

“We are also pleased that the government’s efforts to restructure government owned entities and pro-actively seeking to attract investment into new growth sectors are also being acknowledged,” he added.

In the analysis, as the most important rating drivers, Fitch describes the continuous development of Maltese public finances, firm economic growth and lower nominal interest expenditure.

Fitch also foresees the headline fiscal deficit to shrink to 1.8% of GDP in 2015, with total revenue/GDP going up to a record high of 42.8%.

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