Chamber calls for damage limitation of Enemalta’s credit rating downgrading

The Malta Chamber of Commerce, Enterprise and Industry said it noted with concern the downgrading of Enemalta’s credit rating by Standard and Poor’s. “This will invariably impact on the corporation’s cost of borrowing which is one of its major cost items. Given the full cost recovery approach, this development may exert additional pressure on fuel and utility prices,” it said.

The Chamber added that it insists the country must now endeavour towards avoiding further increases in utility rates which would bring about loss of competitiveness and will also have social repercussions. Such increases, it said, would also impact on the Retail Price Index and exert a second round effect on competitiveness through COLA.

“Besides the impact on prices, the country must also ensure that this latest development does not hamper Enemalta’s current projects to strengthen the reliability of energy supply – which is crucial for Malta’s future economic development,” it said.

The Chamber said it will continue to monitor the situation and shall take the necessary action depending on further developments.