Standard and Poor's affirms Malta's BBB+/A-2 rating

Standard & Poor's Ratings Services today affirmed Malta’s long- and short-term foreign and local currency sovereign credit ratings at 'BBB+/A-2' giving the country a stable outlook. The government welcomed the appraisal. The outlook reflected S&P’s view of a less than one-in-three likelihood of a rating change over the next two years. The outlook also balanced Malta's economic prospects against its recurrent, though declining, fiscal imbalances and relatively high debt, as well as its external data inconsistencies. “We could raise our ratings on Malta if the government's reform program boosts growth and reduces the government debt burden more quickly than we currently expect, without a return to significant current account deficits. “We could lower our ratings on Malta if fiscal slippages increase the government's net debt burden. Negative pressure could also build if Malta's large financial sector were to experience sizable disinvestment or weakening access to external debt and deposit financing, highlighting hitherto absent linkages between internationally oriented banks and the domestic economy,” S&P said. In an overview S&P said Malta's economic growth prospects remained...