Fitch affirmed Malta’s short-term Issuer Default Ratings IDR at F1 and Country Ceiling at AAA, which is the common Country Ceiling for the euro area. The report takes into consideration Malta’s economic recovery since the 2009 recession and its prospects for continued growth. The rating takes into account inter alia the fact that the “…financial system has emerged largely unscathed from the international financial crisis.”
The report highlights the resilience of the Maltese banking sector whereby it is noted that the “authorities’ conservative approach to banking and its supervision” has contributed to the fact that the domestic banks survived the international banking crisis and the recession without the need of any direct financial assistance from the government.
Other positive indicators cited in the report include: Malta’s stable government, its effective civil institutions and lack of corruption leading to a high ranking in the traditional international governance indicators, Malta’s GDP per head which is above the ‘A’ rated median and Malta’s euro area membership which is perceived as a source of strength as it provides a level of protection from currency crises.