Malta maintains strong credit rating

Another positive certificate for the Maltese economy from S&P Global Ratings.

S&P Global Ratings reaffirmed Malta’s strong creditworthiness with a stable A- rating, the highest they’ve assigned the country in the past decade.

The major international credit rating agency issued its rating after concluding its semi-annual credit review for Malta. In this analysis the agency looks at economic performance in recent months as well as how recent developments may affect the country’s prospects. This comprehensive exercise may lead the agency experts to recommend to the board to change the country’s rating.

In the case of Malta this did not happen and therefore its positive rating has been reconfirmed. In the latest report published on Malta, the foreign experts had predicted that Malta’s economic growth would remain above the European average mainly due to sustained tourism performance as well as more use of EU funds. In their report, they had highlighted the resilience of the Maltese economy, while large economies such as the US, China, and France were all given prospects of being downgraded. In fact, France ended up being downgraded when its credit review was carried out.

Among the factors leading to stability for Malta, S&P Global Ratings pointed to the fact that the Maltese government is keeping energy prices stable, and this has helped to keep private consumption buoyant. In fact, Eurostat figures recently showed that, while retail sales across Europe are falling, the trend in Malta has continued to grow.

S&P Global Ratings’ latest report had also noted that families in Malta have around two and a half times the average household savings across the euro area. Recent Central Bank figures indicate that, since the publication of that report, this trend has strengthened further.

Image: T. Schneider/Shutterstock

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