DBRS TIKKONFERMA R-RATING TA’ KREDITU GĦAL MALTA BĦALA A (HIGH) B’OUTLOOK STABBLI

Reference Number: PR201427, Press Release Issue Date: Jul 25, 2020
 
Il-Ministru għall-Finanzi u s-Servizzi Finanzjarji jilqa’ rapport ieħor pożittiv ta’ klassifikazzjoni tal-kreditu ppubblikat minn DBRS Morningstar, wara dak ta’ Fitch aktar kmieni dan ix-xahar, li kkonferma l-klassifikazzjoni ta’ Malta fil-livell A (High) b’Outlook Stabbli.

L-Outlook Stabbli għal Malta, li ġie mill-ġdid ikkonfermat mid-DBRS, irriflettiet il-prestazzjoni ekonomika u fiskali b’saħħitha ta’ Malta f’dawn l-aħħar snin li ħalliet lill-pajjiż f’pożizzjoni relattivament tajba biex itaffi l-impatt fuq l-ekonomija minħabba l-imxija tal-COVID-19. Infatti, id-DBRS tinnota li l-Kummissjoni Ewropea qed tistenna li l-impatt negattiv tal-pandemija fuq il-Prodott Domestiku Gross (PDG) ta’ Malta se jkun l-inqas fost l-istati membri taż-Żona tal-Ewro fl-2020.

DBRS qed tistenna wkoll li l-impatt ekonomiku u fiskali negattiv ta’ COVID-19 se jkun temporanju, hekk kif Malta hija mistennija tirkupra b’mod mgħaġġel wara l-ftuħ gradwali tal-ekonomija u l-miżuri ta' sapport tal-Gvern li evitaw tnaqqis sostanzjali fl-impjiegi.

Skont ir-rapport, il-klassifikazzjoni ta’ A (High) hija sostnuta mil-livell moderat ta’ dejn pubbliku ta’ Malta, il-pożizzjoni esterna b’saħħitha u l-pożizzjoni finanzjarja robusta tal-familji, fost fatturi oħra. DBRS tinnota wkoll li r-rata ta’ tkabbir fil-potenzjal tal-ekonomija baqgħet b’saħħitha u mistennija titla’ għal livell ogħla minn 3 fil-mija fuq medda medja ta’ żmien.

DBRS tgħid li t-track rekord pozittiv fil-finanzi pubbliċi f’dawn l-aħħar snin u l-impenn tal-Gvern sabiex jilħaq il-miri fiskali ser jgħinu sabiex il-finanzi pubbliċi jerġgħu lura f’bilanċ fis-snin li ġejjin.

DBRS tinnota wkoll li qabel il-pandemija, il-proporzjon tad-dejn mal-PGD ta’ Malta kien spiċċa wieħed mill-inqas fl-UE, wara perjodu ta’ tnaqqis qawwi f’dan il-proporzjon. Dan ipprovda lill-Gvern bi spazju sabiex iwieġeb għax-xokk tal-koronavirus, mingħajr ma jipperikola is-sostenibbiltà tad-dejn. Ladarba l-effetti tal-pandemija jonqsu, DBRS tistenna li l-proporzjon tad-dejn pubbliku jerġa' jibda jaqa’ filwaqt li jibqa’ wieħed mill-inqas fl-Unjoni Ewropea.

Malta wkoll mistennija tkompli tirreġistra surpluses fil-kont kurrenti fis-snin li ġejjin u żżomm il-pożizzjoni pożittiva tagħha fil-kummerċ estern.

DBRS tirrikonoxxi s-serje ta' riformi adottati mill-Gvern b'reazzjoni għall-MONEYVAL u r-rapport tal-Kummissjoni ta' Venezja filwaqt li tħeġġeġ lill-Gvern ikompli jaħdem fuq miżuri f'dan ir-rigward.

Il-Ministru għall-Finanzi u s-Servizzi Finanzjarji Edward Scicluna jikkummenta: “Bi pjaċir ninnota li DBRS, bħall-aġenziji l-oħra ta’ klassifikazzjoni tal-kreditu, qed tirrikonoxxi li l-prestazzjoni ekonomika u fiskali b’saħħitha ta’ pajjiżna esibita f’dawn l-aħħar snin, ħalliet il-pajjiż f’qagħda relattivament tajba u preparata sabiex itaffi mill-impatt tal-pandemija filwaqt li jiġi żgurat irkupru mgħaġġel. Dan bis-saħħa tal-politika soda u prudenti tal-Gvern. Il-Gvern ser ikompli jimxi f’din it-triq ta’ suċċess.”

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DBRS affirms malta’s credit rating at a(high) with a stable outlook

The Ministry for Finance and Financial Services welcomes another positive credit rating report published by DBRS Morningstar, following that of Fitch earlier this month, which affirmed Malta’s rating at A(High) with a Stable Outlook.

The re-affirmed Outlook reflects Malta’s strong economic and fiscal performance exhibited in recent years which has left the country relatively well placed to mitigate the risks posed by the COVID-19 outbreak. Indeed, DBRS notes that the European Commission expects the negative impact of the pandemic on Malta’s GDP to be the smallest among the Euro Area member states in 2020. 

DBRS expects the negative economic and fiscal impact of COVID-19 on the Maltese economy to be temporary as Malta is expected to record a strong rebound following the gradual opening of the economy and the Government’s support measures which have prevented substantial losses in employment.

According to the report, the A (high) rating is supported by Malta’s moderate level of public debt, solid external position, and households’ strong financial position, amongst other factors. DBRS also notes that Malta’s potential growth rate remains strong and is expected to converge to levels above 3 per cent in the medium term.

DBRS states that Malta’s fiscal track record and the authorities’ commitment to its medium-term fiscal target supports the fiscal rebalancing foreseen in the coming years.

DBRS positively notes that prior to the pandemic outbreak, Malta’s debt-to-GDP ratio was one of the lowest in the EU, following a period of steep reductions in this ratio. This has provided the Government with valuable room to respond to the coronavirus shock, without materially jeopardising debt sustainability. Once the pandemic effects subside, DBRS expects the public debt ratio to resume to its downward trajectory and to continue being one of the lowest in the European Union.

Malta is also expected to continue to record current account surpluses in coming years maintaining its positive net international investment position.

DBRS acknowledges the series of reforms adopted by the Government in response to the MONEYVAL and the Venice Commission report while encouraging the Government to continue to work on measures in this regard. 

Minister for Finance and Financial Services Edward Scicluna comments: “I am pleased to note that DBRS, like the other credit rating agencies, is acknowledging that our country’s strong economic and fiscal performance exhibited in recent years has left the country relatively well placed and prepared to mitigate the risks posed by the global pandemic and in ensuring a speedy recovery. This is the result of the Government’s sound and prudent policies. The Government intends to keep along this proven path.”