Moody's confirms Malta's A2 credit rating with stable outlook

Moody's has reaffirmed Malta's A2 credit rating with a stable outlook following a periodic review, placing Malta ahead of several European peers carrying negative prospects.

"While five European Union countries have just been given negative outlooks on their classification by Moody's, the international agency has reaffirmed stable outlooks based on Malta's strong economic growth trend, moderate debt and a strong institutional framework," Prime Minister Robert Abela said.

The review, held on 30 April, found Malta's rating backed by strong growth, moderate debt and limited exposure to external shocks. The agency trimmed its 2026 GDP growth forecast slightly to 3.5%, down from 4%, but said this is still well above the EU average of 2.2%.

On public finances, strong growth and better tax collection helped cut Malta's fiscal deficit to 2.2% of GDP in 2025, down from 3.4% the year before. The public debt ratio is expected to hold steady at around 46.3% of GDP before gradually falling.

Moody's also noted that early elections have been called for 30 May and said it does not expect significant policy changes affecting Malta's credit profile regardless of the result.

The agency did, however, flag concerns over rule of law, corruption and money laundering supervision, warning these remain areas where Malta needs to improve.