Moody's and DBRS upgrade Malta's credit ratings

For the first time ever, credit rating agency Moody's has raised Malta's rating to A3 positive, from A3 stable, following an audit released last August.

Another agency, DBRS also announced it has raised its rating for Malta from A to A High. DBRS’s rating increase is the first since October 2013 while Moody’s rating is the highest it has ever been. 

In a statement, the government pointed out that Moody’s rating had previously been decreased between 2008 and 2013. It said that the rating upgrade by DBRS was a result of the great improvements in public finances registered since 2013.

“Since DBRS’s latest review, the projection of the general government debt ratio has been materially revised downwards due to more favourable growth prospects and stronger primary balances in coming years,” DBRS’ experts said.

The agency said it believed that Malta’s debt will amount to 41% of the GDP by 2022, or seven percentage points less than previously predicted.

The government said it was worth noting that, while the opposition continues with its negative campaign, DBRS had chosen to name their economic analysis, 'The Maltese economy continues to power ahead'. Malta reamins one of the top performers in the euro area, according to DBRS, and the economic activity and growth continues to surprise analysts.

DBRS referred to the gaming industry as one of the most important in the economy but insisted that other sectors were also crucial to the growth.

In reference to the current corruption allegations, DBRS have said that “the government is making additional efforts to improve governance and strengthen its institutional framework”.

Moody's said it had decided to raise Malta's rating because of Malta's fiscal strength and its growth prospects.

The agency praised the "measures implemented in recent years targeting the labour market”, kif ukoll “substantial progress has been made in diversifying Malta’s energy sources and increasing energy efficiency."