International agency DBRS (Dominion Bond Rating Service) confirmed Malta’s rating as A (high) with a stable outlook. This is the best rating ever given to our country by this agency. In contrast, since the outbreak of the pandemic, the same agency has downgraded the rating outlook of countries such as France, Italy and the United Kingdom.
International experts point out that “Malta’s strong economic and fiscal performance in recent years has left the country relatively well placed to mitigate the risks posed by the Coronavirus Disease (COVID-19) outbreak.” So much so that the report claims that the blow to economic growth will be temporary and that “a strong rebound should follow”. While foreign experts predict that the fiscal situation will reflect the strong package of aid incentives, “Malta’s public debt ratio is expected to remain one of the lowest in the European Union”.
The DBRS team joined other foreign experts in concluding that the Maltese economy will suffer less than the rest of the eurozone. They also confirmed that “Malta’s potential growth rate remains strong” and a key reason is that “government support measures have prevented substantial losses of employment”.
Noting the strong support for the economy, and the plan to invest heavily in industrial infrastructure, DBRS experts believe that “the budget to already start rebalancing in 2021.” International experts are confident in the strength of the Maltese economy and mention “Malta’s fiscal track-record and the authorities’ commitment to its medium-term fiscal target”.
The DBRS agency argues that the financial sector is sound with good levels of capital, liquidity and profitability. He points out that the financial situation of households is very strong, which has reduced the impact of COVID-19 on the financial system.
Foreign experts also note that “the Maltese authorities have been implementing a series of ambitious reforms” for governance. They say that our country is well compared with the governance indicators as set by the World Bank, recalling that the Commission Venice welcomed the Government’s legislative proposals.
While welcoming this positive certificate for our country, the Government reiterates its will to increase the pace of reforms to further strengthen the economic and social situation. This administration is committed to building a Better Tomorrow for the benefit of all the families of our country.