Updated at 12.30pm: Adds minister's statement

Creditreform Rating has affirmed the unsolicited long-term sovereign rating of “A+” for Malta. It also affirmed Malta’s unsolicited ratings for foreign and local currency senior unsecured long-term debt of “A+”. The outlook is stable.

The agency said the key rating drivers included that Malta's very strong growth performance supported further the improving labour market conditions and that
output growth was set to remain among the strongest in Europe in 2017-18.

Creditreform noted that there were persisting inefficiencies in administrative procedures and the judicial system despite a generally high quality of institutional set-up and reform efforts to strengthen the business environment.

It said Budget consolidation advanced in 2016 and was set to continue in the medium term noting that the government had a track record of overachieving its fiscal targets.

The agency said it expected Malta to make further progress on debt reduction, with the government’s debt-to-GDP ratio falling close to 50% in 2018.

It noted that the volatility in the current account balance and a high stock of external liabilities were balanced against a strong external asset position and prevalence of domestic funding in the private sector.

The report in full may be read here.

Minister welcomes rating

The rating was welcomed by Finance Minister Edward Scicluna who said this was another positive endorsement just two days after receiving the European Commission's green light on Malta’s 2018 Budget and the health of the economy,.

"Such results will continue to boost international and local consumer and business confidence,” the minister said.