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Malta Credit Rating Upgraded

Malta Credit Rating UpgradedMalta Credit Rating Upgraded

Following Standard and Poor’s credit rating upgrade in October of last year, Fitch has now upgraded Malta’s sovereign credit rating from A to A+ with a stable outlook, MNA reported. In a statement, Finance Minister Edward Scicluna said the upgrade reflected the progress of the last four years on various priority sectors, in particular the consolidation in public finances. The credit rating institution defines one of the main contributors to this upgrade as the “fast declining gross general government debt” which is expected to “decrease to 50% of GDP in 2019...supported by strong nominal GDP growth and recurrent primary surpluses”. Fitch added that it also expects government-guaranteed liabilities to decline in the coming years. Another main driver contributing to the upgrade was the positive turnaround in the fiscal balance, where the government successfully turned years of fiscal deficits into a fiscal surplus last year. Fitch expects Malta to continue achieving a fiscal surplus in the coming years, which, it added, reflects the government’s efforts to improve tax collection and tax revenue; reduce unnecessary expenditure on social benefits and ease pension pressures; and support higher robust economic growth.

 

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