Fitch Ratings today affirmed Malta's Long-term foreign currency and local currency Issuer Default Ratings (IDRs) at 'A+'. Both ratings have Stable Outlooks.
In its report today, Fitch said it affirmed Malta's Short-term IDR at 'F1' and Country Ceiling at 'AAA', which is the common Country Ceiling for the euro area.
"Malta's rating reflects its continuing, if unspectacular economic recovery since the 2009 recession and the expectation that this will proceed with no more than a small deterioration in the growth rate in 2012," said Chris Pryce, Director in Fitch's Sovereign Group.
"The rating also takes account of the encouraging outlook for Malta's public finances and the fact that the predominantly offshore financial system has emerged largely unscathed from the international financial crisis."
Unlike the fiscal deficit, which performed a little better than the current 'A' rated peer group medium in 2010, Malta's government debt ratio at 68% remains well above the comparable 'A' peer group median of 40%, a major rating weakness," it said.
It noted that the domestic banks survived the international banking crisis and recession virtually unscathed and required no direct financial assistance from the government. "Malta ranks highly in the traditional international governance indicators and is noted for its stable government, effective civil institutions and lack of corruption.
Its GDP per head is above the 'A' rated median. The main drivers of future changes in the rating include resolute fiscal consolidation on the positive side.
