The German credit rating agency, Creditreform Rating is forecasting that Malta’s economy will remain stable as it has confirmed Malta’s A+ rating.
In a statement issued by the government, it was explained that this credit rating follows the one’s issued by Fitch, Standard and Poor’s and Moody’s rating. In April this year, both Moody’s and Fitch were forecasting that Malta’s economy will remain stable. Fitch had revised Malta’s rating from Positive to Stable while Moody’s have affirmed Malta’s A2 rating.
The government said that according to Creditreform Rating Malta’s economy shall recover through the second half and beyond as restrictive measures against coronavirus are gradually eased and policy efforts devoted to COVID-19 should mitigate the worst effects on the corporate and household sector.
The report by the credit rating agency is predicting that in 2021 Malta will experience a 5% economic growth due to the sustainable igaming industry and other major investment projects.
According to the German agency, the financial package provided by the Maltese government is being considered as a substantial policy package which will limit corporate bankruptcies and redundancies.
It was also highlighted how “Malta’s initial fiscal position, together with the fiscal prudence demonstrated in the recent past and the assumption of a short-lived shock, all support the stable outlook on Malta’s credit rating”.
Another factor which was considered by the credit agency was the debt affordability and said that it appears to be of no major issue for Malta.
The government said that Creditreform Rating believes that Malta will remain one of the strongest economies within Europe which will manage to grow and generate jobs. Their credit assessment also factors in the quality of the sovereign’s institutional set-up, which they deem as generally high.
If you want to be the first to receive the latest news on the coronavirus in Malta, download the Newsbook APP here.