S&P: Outlook on Malta revised to Positive, with warnings on competitiveness and non-performing loans

Ratings agency Standard and Poor's has revised its outlook on Malta to Positive from Stable. The 'BBB+/A-2' ratings were affirmed. In a report on Malta it said it expects the economy to expand by close to 3% annually on average in 2015-2018. "We believe Malta’s economy will continue to outpace the eurozone as a whole, notably because of investments in the energy sector. Investments include the laying of an interconnector cable to Sicily (currently in a testing phase), as well as the building of a liquefied natural gas terminal, a natural gas plant, and the conversion of an oil-fired plant to gas, all expected to be finalized in 2016. "Beyond 2016, further diversification of the economy--particularly into information and communication technology and medical tourism--could boost investment. Moreover, we expect domestic demand to be backed by stronger private consumption, resulting from government-mandated cuts to utility tariffs that have reduced electricity prices by 25%. "Lastly, consumption trends are being supported by rising real wages and, more importantly, broader female participation in the labour market," the agency said. It said it expected tourism to continue to perform...