What S&P said on Malta's rating

The Finance Minister and the leader of the Labour Party this morning blamed each other after ratings agency Standard and Poor's downgraded Malta's long term rating. This is what the agency said: "-- The dissolution of Malta's parliament on Jan. 7, 2013, will prevent a 2013 budget from being adopted until after the elections set for March 9, thus raising questions about the government's ability to restore the fiscal flexibility it has gradually lost, and resolving the recurrent budgetary risks caused by loss-making state-owned enterprises. -- Gross general government debt has risen to just above 75% of GDP, and could continue to increase on the back of weaker-than-projected growth or stock-flow adjustments. -- We are therefore lowering our long-term sovereign credit rating on Malta to 'BBB+' and affirming the short-term rating at 'A-2'. -- The outlook on the long-term rating is stable, reflecting our view of Malta's relative resilience to the ongoing political, financial, and monetary challenges in the eurozone."     Rationale "The ratings are supported by our view of Malta's strong political institutions and its relative resilience. The ratings are constrained by our view of...