Malta's Credit Ratings Get Boost From Moody's And DBRS

 Moody's said it had decided to raise Malta's rating because of Malta's fiscal strength and its growth prospects. The new rating is the highest it has ever been.

Credit rating agency Moody's has raised Malta's rating to A3 positive, from A3 stable, following an audit released last August, while another agency, DBRS also announced it has raised its rating for Malta from A to A High.

Moody's said it had decided to raise Malta's rating because of Malta's fiscal strength and its growth prospects. The new rating is the highest it has ever been.

The agency praised the "measures implemented in recent years targeting the labour market”, adding that “substantial progress has been made in diversifying Malta’s energy sources and increasing energy efficiency."

Meanwhile, DBRS’s rating increase is the first since October 2013. “Since DBRS’s latest review, the projection of the general government debt ratio has been materially revised downwards due to more favourable growth prospects and stronger primary balances in coming years,” DBRS’ experts said.

The agency said it believed that Malta’s debt will amount to 41 per cent of the GDP by 2022 – seven percentage points fewer than previously predicted.

DBRS referred to the gaming industry as one of the most important in the economy but insisted that other sectors were also crucial to the growth.

With reference to the current corruption allegations, DBRS claimed that “the government is making additional efforts to improve governance and strengthen its institutional framework”.

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