Moody’s affirms Malta’s A3 government bond rating

In a statement released by the rating agency on 5 September 2012, Moody’s Investors Service confirmed Malta’s A3 government bond rating.

While the outlook remains negative, Moody’s said that the key drivers for the affirmation were the Maltese government’s successful consolidation strategy, which brought the 2011 fiscal imbalance below the 3% of GDP ceiling under the excessive deficit procedure; the expectation that debt ratios will stabilise in 2013, curbing further deterioration of key credit metrics that are already weaker than `A’ category medians; and the continued presence of significant macroeconomic and fiscal downside risks.

In its reaction, the Government of Malta noted that Moody’s had confirmed Malta’s rating and outlook  on the same day the outlook for the whole European Union. The Government attributed the negative outlook on Malta’s sovereign rating because of the current investor sentiment in the eurozone but expressed satisfaction that Moody’s were confident that Malta will further narrow its deficit and sustain its successful consolidation strategy.

Click here to read the Government of Malta’s press statement.