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Malta receives another A credit rating

29.08.2017

DBRS, an independent credit rating agency has rated Malta’s credit rating at A and promoted the trend to a positive one.

The agency recognised Malta’s fiscal outcome as ‘better than expected in 2016’, turning a long streak of fiscal deficit into one of surplus. DBRS highlighted that last year the debt ratio by the Government of Malta dropped below 60% of the GDP. According to the agency such results were attributed to “strong revenues as well as moderation in expenditure supported by a strengthened fiscal framework.”

Finance minister Edward Scicluna said that, “four years ago, we had promised to work on upgrading Malta’s credit rating which would make our country more attractive to foreign investors. In contrast with the past deteriorating state of public finances with ballooning deficit and debt ratios, we directed our efforts to addressing such issues, bringing about an upgrade to Malta’s rating, and hence honouring our promise.”

Malta- Valletta harbour_Nexia BT

Thanks to this achieved “over-performance” for Malta, DBRS noted that it is now in compliance with the budget balance rule, the debt rule and the expenditure benchmark of the EU Stability and Growth Pact in 2016. Furthermore, it is expected that “the important improvement in the fiscal position over the past three years is likely to be sustained. A sound budget position, together with solid growth, is expected to lead to the further reduction in the public debt ratio.”

The Maltese Government’s efforts to address structural and fiscal encounters were recognised in the agency’s report, which include the restructuring of the national airline Air Malta and Enemalta alongside measures to tackle tax evasion and informality.

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