The ratings agency Standard & Poor's has raised its long-term sovereign credit ratings on Malta to 'A-' from 'BBB+'. EXANTE's Communication Director Patrick O'Brien says that the upgrade reflects what S&P called 'Malta's improved credit metrics', including:
- strong real GDP growth;
- deficits below 1 per cent for the 2016-19 period;
- durable current account surpluses.
The government in its turn welcomed the rating upgrade, noting that it was the first time in 20 years Standard & Poor's had bumped up Malta's rating.
The main reasons of the Maltese economy’s growth according to S&P are an expanded workforce and the economy’s capability to contain the long-term effects of Brexit. The rating agency, however, cautioned that the banking sector's size of Malta posed a potential risk to public finances.
'Notwithstanding the limits put on government support through the EU banking framework, financial stress in the sector could put pressure on the deposit insurance system and impose broader economic costs on the government,' the S&P report read.
For the full article by Patrick O'Brien, please visit The Times of Malta.