Malta credit rating upgraded for first time in 11 years by Moody’s

Malta’s credit rating has been upgraded to A2 stable by Moody’s

Malta's credit rating was upgraded by Moody's
Malta's credit rating was upgraded by Moody's

The good news for the economy continues with credit rating agency Moody’s being the latest to upgrade Malta’s standing to A2 stable from A3.

This is the first time in 11 years that Moody’s has upgraded Malta’s rating after successive dowgrades in 2011 and 2012.

Moody’s noted Malta’s continued prudence in fiscal management and the reduction in debt as a result of economic growth.

The agency’s experts said national debt had fallen from 70% of GDP to the 40% projected for next year. This was brought about via economic growth and a better control on government expenditure.

The agency also noted structural reforms in the administration of public funds and an improvement in the way public companies like Enemalta and Air Malta were being run.

“The rating agency believes that Malta’s medium-term potential growth rate will remain elevated compared to most European peers,” Moody’s said.

The government said in a statement that the Moody’s upgrade meant that since the change of government in 2013, the four main international credit agencies have all given Malta a better score. This contrasted sharply with five years of downgrades between 2008 and 2012, the government added.

“The government is committed to continue working so that the country could obtain better results with the aim of ensuring that wealth reaches everyone,” the government said.

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