Fitch states that Malta outperformed the average performance of ‘A’ rated countries

In this report published on 27th February 2015, Fitch Ratings has reaffirmed Malta’s ‘A’ Rating with a stable outlook. Fitch states that Malta’s robust economic growth has continued to outperform that of euro area countries, and also exceeded the median growth rate of countries classified under the same ‘A’ credit rating.




Fitch describes the public finances as ‘improving’ and expects the sustained decline in budgetary deficit to continue further during the coming years.




With regards to the falling debt-to-GDP ratio Fitch acknowledges its improving debt dynamics, Fitch projects the debt to decline to 68.8 per cent in 2014 and to continue falling to 67.4 per cent 2015. Fitch foresees the debt-to-GDP falling to 65.6% by 2018.

Fitch welcomes the Government’s commitment to ensure fiscal sustainability through the adoption of the Fiscal Responsibility Act, remarking how this will help anchoring fiscal policy and contain growth in public expenditure.

Furthermore, Fitch notes the recent agreement with Shanghai Electric Power Company, stating that the deal “has the potential to enhance Enemalta’s profitability … and reduce its debt”, and is likely to reduce contingent risks. This is likely to impact positively on Malta’s future ratings.



Malta’s leading economic performance is expected to persist in the coming years, with the rating agency acknowledging the increase in real disposable income as a result of the reduction in electricity tariffs, and a buoyant labour market which stem from this Government’s active labour market policies.

Both private investment and exports are expected to continue growing, the latter buoyed by a recovery in the electronics sector, and sustained growth in tourism.

The solid foundations of Maltese banks were also noted, with Fitch stating that they have passed the European Central Bank’s Comprehensive Assessment unscathed.

The Minister for Finance Professor Scicluna remarked that “whilst welcoming the Fitch Ratings’ positive assessment, which follows two others in the same vein in the same week, one by the Commission and the other by the IMF, the Government remains both committed and confident that it will continue attaining its more ambitious budgetary targets, as outlined in the Budget.


27th February 2015


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