Moody’s confirms Malta’s credit rating, welcomes reforms

Tista' taqra bil- Malti.

Moody’s has confirmed its credit rating for the Maltese government – A2 stable – with the government declaring itself pleased with the agency’s assessment of the recently-introduced constitutional reforms.

A2 is the sixth highest rating in Moody’s 21-point scale, classified as upper medium grade and thus subject to low credit risk.

But the government highlighted Moody’s assertion that “we view the adoption of laws based on the Venice Commission recommendations as a sign of the determination of Prime Minister Robert Abela… in tackling Malta’s institutional challenges.” It also said that according to Moody’s, Malta’s governance was “in line with peers.”

In its reaction to the report, the government also highlighted Moody’s economic forecast in the wake of the Covid-19 pandemic, with the agency stating that “we currently expect that the impact of the shock will be largely transient, with the Maltese economy returning to growth in 2021.” This, the government said, reflected a strong track record on economic growth.

The government concluded by welcoming what it called to be a vote of confidence in its economic and institutional efforts, and pledged to carry out further reforms going forward.