The credit rating agency DBRS Ratings Limited has confirmed Malta’s long-term foreign and local currency issuer ratings at A and its short-term foreign and local currency issuer ratings at R-1 (low). The trend on all ratings remains stable.

In a statement, the company said the A rating reflected Malta’s Eurozone membership, which ensured reliable access to European markets, fostered strong and credible macroeconomic policies and made available financial support from European institutions.

The country’s solid external position also supported Malta’s ratings, together with a favourable public debt structure and the robust financial position of households.

It warned, however, that Malta’s public finances remained a source of vulnerability, and that the Maltese economy was exposed to external shocks, particularly those emanating from within the EU. Pressures from ageing costs, if unaddressed, could also pose a concern for the pensions system, it said.

The stable trends reflected DBRS’s assessment that risks to the ratings were broadly balanced. The ongoing improvement in the fiscal position and solid economic performance counterbalanced some of Malta’s fiscal vulnerabilities and the potential impact from a slowdown in the UK economy.