January 2013 welcomed the news that Malta’s credit rating has been affirmed by Fitch. The credit rating agency has recently retained Malta's 'A ' sovereign rating and confirmed that it continues to warrant stable outlooks.tlooks.
Fitch considered both the systemic and country-specific factors of the six sovereigns being reviewed, namely, Malta, Italy, Spain, Belgium, Slovenia and Cyprus. Malta is the only country from the six Eurozone sovereigns reviewed which has retained a stable credit rating. Fitch downgraded the ratings of Belgium, Cyprus, Italy, Slovenia, Spain and Ireland. Italy, Spain and Slovenia were downgraded by two notches due to a significantly worsened fiscal and economic outlook. Ireland’s greater vulnerability to monetary as well as financing shocks and the country-specific concern primarily related to the banking sector in Cyprus were also highlighted.
Fitch anticipates that European leaders will make good on the commitment to enhance economic policy coordination so as to prevent a recurrence of the severe macro-financial imbalances in the forthcoming 30 January summit. Fitch perceives the decision to bring forward the creation of the European Stability Mechanism and increase the resources of the IMF as a step towards enhancing the capacity of the Eurozone to absorb adverse shocks (such as a disorderly Greek default) although the agency does not expect such a shock to occur.
The Fitch’s credit rating has confirmed that its stable outlook for Malta relative to 2012 has remained unchanged.
