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DBRS Ratings GmbH (DBRS) has confirmed Malta’s long-term foreign and local currency rating at A (high). It also confirmed its short-term foreign and local currency R-1 (middle). The trend on all ratings is stable. DBRS said it based its considerations on tDBRS confirms Malta's rating at A
DBRS Ratings GmbH (DBRS) has confirmed Malta’s long-term foreign and local currency rating at A (high). It also confirmed its short-term foreign and local currency R-1 (middle). The trend on all ratings is stable. DBRS said it based its considerations on the fact that economic momentum remained strong, with gross domestic product (GDP) growth accelerating to 7.5% year over year in last year’s third quarter. The Central Bank of Malta’s latest estimates pointed to full year growth at 5.9% in 2018. DBRS expected GDP growth to decelerate gradually but to remain high in years to come, especially when compared with its European peers. Benefiting from tax-rich economic growth, fuelled by domestic demand, strong job creation, and the impulse from its International Investment Programme (IIP), the CBM estimated Malta’s fiscal surplus stood at 2.1% of GDP in 2018. Against this backdrop, the Maltese government’s debt-to-GDP ratio could drop to 45% in 2018, according to the CBM. DBRS expected the debt ratio to continue to decline related to the primary surplus and the favourable debt snowball effect. The rating confirmation reflected DBRS’s view that despite the upward pressure from... Read more