Fitch Ratings has affirmed Malta's Long-Term Foreign and Local Currency Issuer Default Ratings at 'A' and revised the Outlook to Positive from Stable. The issue ratings on Malta's senior unsecured Foreign and Local Currency bonds have also been affirmed at 'A'
The credit rating agency noted that the banking sector remains well capitalised, liquid and profitable despite moderate credit growth.
The report notes that economic growth continued to outperform the eurozone average and peers in at 5.2% in the first quarter of 2016. Fitch expects growth to remain buoyant although moderating over 2016-2018 at 3.6%, driven by strong domestic demand. Fitch also welcomes the improvement in the country's financial position, noting that the fiscal deficit is forecast to narrow to 0.9% of GDP in 2016 and to 0.8% in 2017, below the 'A' median, from 1.5% in 2015.
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