Malta Gets Another Positive Credit Rating

International credit rating agency, DBRS, has affirmed Malta’s credit rating at A while upgrading the trend on the ratings to positive. The development comes weeks after credit rating upgrades by Standard and Poor’s and Fitch, Yahoo reported. DBRS acknowledges that, following a fiscal consolidation process since 2013, Malta’s fiscal out-turns came in better than expected in 2016 where decades of fiscal deficits were turned into surpluses. The credit rating agency also noted that in 2016, the government debt ratio, which was already 12 percentage points lower than its 2011 peak, fell below 60% of the GDP. DBRS attributes the improvement in public finances to “strong revenues as well as moderation in expenditure, and supported by a strengthened fiscal framework”. However, Malta’s contingent liabilities remain a source of vulnerability, its economy is exposed to external shocks and pressures from the rising age-related costs, if unaddressed, could pose a concern for pensions, DBRS warns.