S&P confirms Malta's credit rating, concerned about Enemalta
Ratings agency Standard and Poor's said today that it had confirmed Malta's 'A/A-1' Sovereign Credit Ratings and viewed its outlook as Stable.
"We believe that Malta's economy has weathered the global economic crisis relatively well. The Maltese government is addressing the deterioration in its fiscal position as well as structural obstacles to economic growth. The stable outlook reflects our expectation that growth will return to the Maltese economy," the agency said.
It added that downside risks remain, among others from the banking system and state-owned electricity provider, Enemalta.
S&P said it expected that growth would return to 1% this year as external and domestic demand start to recover, but gains in competitiveness were needed to secure high growth rates over the medium term.
"The stable outlook balances our expectation of continued fiscal consolidation against the difficulties of increasing competitiveness in combination with a high debt burden,"
"Risks from Enemalta and the financial sector could put downward pressure on Malta's creditworthiness if plans to reform its business model prove ineffective or if there is a downward revision of property prices.
"As the ongoing restructuring of the traditional economic sectors and the diversification into new services sectors continues, Malta's creditworthiness could improve if the competitiveness of the economy improves in the medium term. A significant decline in the debt burden would also support higher creditworthiness," the agency said.
"Conversely, in the case of sustained and significant fiscal deterioration, or further deterioration in the competitiveness of the economy, the ratings could come under pressure."
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Julian Esposito
Oct 27th 2010, 18:07
Why wouldn't anyone believe it? I assure you it is the truth. I also went to the police station to file a report, but apparently they take no action if you cannot give them a name. I did not think it was my job to be an investigator.
Secondly what makes you think I have ANYTHING against single mothers?? Can you read my comment within its context. Maybe if you weren't prejudiced you wouldn't have read something I did not write. What I am against is positive discrimination.
Muscat Pat
Oct 6th 2010, 17:33
The fact that the local Church is 1 million euro in the red, (that is people are finding it difficult to help the Church in its charitable and spiritual mission), is a clear indication that not all is well in the realm of the economy. Who needs Credit Agencies to tell how we should fare when in reality we are all feeling GonziPN's pinch?
L.Muscat
Oct 6th 2010, 19:18
The Church this year received €200,000 more in collections and its income from investments, deposits and loans also increased. The Church also paid less tax because of refunds it was due, as well as benefiting from an amnesty.
So it's not as you commented. If it's as you said why are the political parties always organising fund-raising.
Charles Callus
Oct 7th 2010, 16:24
L Muscat; so can you explain http://www.timesofmalta.com/articles/view/20101006/local/churchs-reserve-fund-to-run-out-within-a-year to us? If it is as you say and the Church has it so good, why is Mgr Cordina making such mountains out of molehills? I'm sure that Mgr Cordina will be greatly relieved after reading your comment.
Charles Grixti
Oct 6th 2010, 16:03
Why doesn't anyone question the sanity of the economic diktum that there has to be 'growth'. Why can't an economy be humming along nicely in an equilibrium? Taken to its logical conclusion, this economic growth theory (in many cases growth has to increase in each and every quarter), means that there would have to come a point where everyone, including children and old, old people will have to work 24/7 with no respite to satisfy this monster.
Running a country (and by extension its people) and treating them like a company or corporation, without any concerns for the social, moral and ethical considerations will ultimately lead to the deterioration of democracy and humang rights and lead us back to the Feudal System that was in place in Europe throughout much of the dark ages. Is this the Brave New World that we have to look forward to?
J Camilleri
Oct 6th 2010, 16:19
Charles, we have been experiencing continuous economic growth not by working more in the time-sense of the word, but by adapting modern means of production and servicing, even reducing our working hours in the process. many years ago the working week consisted of 48 hours. Today its 40, and some countries (the most economically advanced) even have 37.5 and 35 hours working weeks. This proves your theory wrong.
Charles Grixti
Oct 6th 2010, 17:53
@J.Camilleri
In North America, these economic policies have been implemented for decades. Result? - People can only get low-paid service jobs, some of which are temporary, with no benefits, no vacation leave or sick pay. Most people need to take 2 or even 3 such jobs (hence working 24/7) to supply the bare necessities, yet governments cut more taxes from Banks and Corporation and load them to the working classes to make up the deficit.
Cuts to pensions and social spending in an effort to balance government budgets, autocratic rule by elected representatives who have ceased to represent the people, together with a shift to the Rightist governments, will ensure that citizens' and workers’ rights are further eroded. How do you think you get homeless people and poverty stricken old age, and mental patients living in the streets? And this is coming to Europe too (now that you have the IMF dictating European fiscal policy).
Come and see for yourself, never mind the propaganda and Hollywood fantasy world that is being piped in to every home via cableTV networks that reflect only one opinion and one world agenda.
The economic theory of ever expanding 'growth' is fundamentally wrong and unsustainable.
Mikiel Sciberras
Oct 7th 2010, 00:49
@ J. Camilleri
I think that Charles Grixti is making a good point. Who are these entities such as S&P or Moody’s anyways and why are their pronouncement so ominous? I think that if you just lift the curtain, what you will seen behind them are the tentacles of the same cabal of banks that lend out hundreds of billions through the IMF, bringing ruin and misery to countless nations and people.
And I tend to agree with Mr. Grixti's evaluation - now that the IMF has got its claws into Europe too, it is time to claw back all the gains made by the working classes, be it short work week, vacation and sick leave or a decent retirement.
And in case you missed it, the great claw-back has already started - all across Europe, on the directives of the IMF, our Governments are falling upon themselves to extend the retirement age and reduce pension. And believe me, this is just the start. Why do you think that thinking people everywhere in Europe have staged massive strikes and protests? They know a boondoggle when they see one.
victor caruana
Oct 6th 2010, 15:56
Even though not an AAA, they also used to positively about Lehman's, AIG, Freddy and Mac, RBS and HBS amongst others.
Maybe our stability is guaranteed with a 1.6 euro increase in wages. We are moving towards slavery type of compensation - give you work for food and shelter....some are not even there.
N.Farrugia
Oct 6th 2010, 15:25
The PL will surely find some specks to criticise the government after this S&P positive report! Or maybe they ignore it completely as they do when positive news come their way. The same goes to One News. Or may I nickname it Jeremiah News?
Julian Esposito
Oct 6th 2010, 15:04
J farrugia not totally out of line for saying so. I have witnessed first hand a single mother, who
-Switches on the A/C in early May and does not switch it off till October.
-Has a water pump needlessly working 24hrs a day (and disturbing our sleep)
-Also noticed the TV is on 24 hours a day even when no one's home
Disgusting!
Paul Vella
Oct 6th 2010, 15:49
@ Julian Esposito
...and the easy way out is to label all single mothers and socially deprived persons and put the blame for the woes highlighted by S&P on them....The insensitivity that has pervaded our society is simply sickening.
Julian Esposito
Oct 6th 2010, 16:14
@ Paul Vella
First of all you have to take my comment in the context that I was replying to J. Farrugia, below. (I did use the reply to feature, but for some reason it did not place my message accordingly)
Secondly, if anybody mentioned ALL single mothers, it was you, not me. I said A single mother. I do not get any subsidies for my consumption and it disgusts me to see people who are not paying, if not actually stealing electricity, having absolutely no remorse for their extreme consumption and total disregard to others and the environment.
Jacob Sammut
Oct 6th 2010, 21:32
Julian Esposito Do you know if she is well-off in spite of being a single mother? Do you think that all single mothers are poor? Maybe the majority are but even a millionaire can be a single mother. Do you think that anyone is going to believe you that she keeps the air conditioner on from May to October and a water pump and TV on 24 hours a day without switching them off unless she's a millionaire? Pull the other one Julian. It tickles more.
Paul Vella
Oct 6th 2010, 14:47
@Ternce Farrugia & all the like minded opinionists in here
Rating agencies such as Standard and Poor consistently gave rave ratings to institutions such as Lehmann Brothers. The rest is history with all its dire consequences.
Paul Vella
Oct 6th 2010, 14:39
Most blinkered comment competition is now in full swing. What counts is not what S&P or the establishment or what the Opposition say. It's al down to John Citizen quietly pondering and deciding within the proverbial four walls. Vox populi vox Dei
Terence Farrugia
Oct 6th 2010, 14:36
Din il-gimgha kiener daqqa ta' harta ghal Joseph Muscat u l-kor tal-bikejja ....
- il-labour force survey ikkonferma li l-qghad niezel u niezel sew
- Standard & Poor tikkonferma li l-ekonomija maltija sejra tajjeb...
lil min nemmnu lil Joseph Muscat jew lil min hu independenti u m'ghandux agendi ??
joseph it's time to pick up your mask....!!
a baldacchino
Oct 6th 2010, 15:16
Siehbi, nahseb li l-ahjar ma temmen lill hadd. Ghara naqra biss x'qed jghid il-poplu tat-triq, il-mara tad-dar, in-negzjant, u dawk kollha li jridu jdahlu idejhom fil-but biex ikomplu l-hajja normali taghhom. Dak li jghidu s-surveys u l-Politikani kollhu cover-ups, u tawwig tad-diskors skond ma jaqbel lilhom.
Samuel Debono
Oct 6th 2010, 14:32
" We believe that Malta's economy has weathered the global economic crisis relatively well "
Joseph Muscat please note... !!
We expect JM to admit that he was wrong for the past 24 months ...to say the least !!
Peter Korsten
Oct 6th 2010, 14:57
Given that the rating used to be 'A', going down to 'A/A-1' hardly counts as an improvement.
Please note: we still have a very large national debt, and it's still going up.
E Fenech
Oct 6th 2010, 14:30
A certificate for the Gonzi's Par idejn sodi...
another confirmation that Goverment is on the right track...
ha naraw Joseph Muscat biex ser johrog din id-darba !
Gianninu Saliba
Oct 6th 2010, 14:28
So, Joseph, in your expert opinion, do you think that Standard and Poor are talking rubbish? Do you think that there is corruption there as well? Do you think that Standard and Poor are being bribed by the PN?
Well done Dr. Gonzi. Well done Tonio Fenech. Well done to the PN in Government.
l fenech
Oct 6th 2010, 14:33
They critizise us on two essential points that have covered our papers all year round, and these are outsiders who do not reside in Malta and everything is all right all we hear now is demolition.
RMangion
Oct 6th 2010, 15:16
Sur Saliba,
Int Malta tghix ?
Jghidu x jghidu ta S&P, trid tkun tghix f pajjiz biex tkun taf
joseph cachia
Oct 6th 2010, 15:29
So, Mr Gianninu, have you ever readt Standard & Poor recent history ??
For the money one pay them, they issue out whatever you wish.
Have you any idea what amount of debt we are in ???
Keep on deaming
A. Dimech
Oct 6th 2010, 14:03
Aliex l enemalta ma tamilx audit sura u tara fej qed imorru l flus?
Petrol dejjem jola. Kontijiet dejjem jolew. Possibbli m humiex stabbli? Min qed idahhal idejh fil but ta l enemalta?
J Farrugia
Oct 6th 2010, 14:24
nahseb li zitek qed iddahhal idejha fil-but tal-enemalta. Ghax ma narawx is-sangisugi li hawn li mhux qed ihallsu l-kontijiet tad-dawl u l-ilma jew dawk li qed jghixu bis-sussidju minn fuq dharna. jahlu kemm jifilhu u ma jhallsux ghax taparsi foqra. halluna. mghandhomx dritt ghas-servizz jekk ma jhallsux dak kollu dovut minnhom. U mbaghad jkunu jistghu jorhsu -kontijeit tad-dawl u l-ilma, GHAX AHNA QED INHALLSU GHAL 30,000 PERSUNA MINN FUQ IS-SERVIZZI SOCJALI.
Paul Vella
Oct 6th 2010, 14:32
@ J Farrugia
Typical blinkered comment.
N. Pace
Oct 6th 2010, 14:52
Paul Vella
wake up and smell the coffee...... J Farrugia is right
Paul Vella
Oct 6th 2010, 15:46
@ N Pace
If the comment I referred to also included matters such as the waste of financial resources in the undertaking of infrastructural projects, the waste of these resources resulting from the wrong priorities when undertaking projects and the waste as a result of outdated work practices that seem to be endemic, it would have been fine. But obviously the gentleman in question may be too blinkered to take these into consideration.
Incidentally I have woken up and smelt the coffee long ago. Don't you worry
Joe Borg
Oct 6th 2010, 21:35
Is-soltu ta' J Farrugia li jippriva jiddefenda lil Gonzipn u shabu minkejja li ma jistghux jigi difizi ghall-azzjonijiet taghhom.