Ratings agency Standard and Poor’s has downgraded Malta’s long-term rating to BBB+, while maintaining the short term rating at A-2.

Finance Minister Tonio Fenech said the downgrade was the result of the decision taken by the Labour Party to vote against the Budget. This, he said, was the consequence of dissolving parliament without a Budget.

Quoting an S&P statement, he said, the agency viewed this as eroding investors' confidence in Malta. 

Labour, he said, needed to shoulder its responsibility.

The government, he said, had called on Labour to ensure that Malta had a Budget before the election, especially as the Opposition was in favour of its measures.

But Dr Muscat, out of pique, had refused. And now, as a consequence, S&P had downgraded Malta, the minister said.

He said that this and other agencies were also concerned about the current debate on energy. They could not understand how tariffs could be reduced by 25% when Enemalta had such huge problems. It was such uncertainties, Mr Fenech said, which would instil doubts in Malta's future.

Labour, he said, should not continue to make irresponsible promises which were not believed.

The people, he said, needed to appreciate the importance of voting PN in order to have a secure future for Malta.

Dr Muscat was not yet in government, yet he was already harming Malta's standing and scaring investors, he said.

The press conference was also addressed by Tourism Minister Mario de Marco, who said sound government finances were key for a government to continue to attract investment and support its programmes in social security health, education, the environment, tourism and all the other sectors.

The PN government over the past five years managed to maintain sound finances, to the extent that the deficit was below the 3% EU threshold and the country was taken off the excessive deficit procedure.