Agreements with reputable credit rating agency Fitch to assess the state of Malta’s finances were published this week with details on the fees paid redacted.

Finance Minister Edward Scicluna tabled in Parliament copies of the agreements with Fitch by both the Nationalist and Labour administrations in reply to a request by Nationalist MP Simon Busuttil.

The agreements note that the credit rating exercise was being sought by the Maltese government and that it was based on information supplied to the agency by the government.

“Fitch is not your adviser and is not providing you or any other party with any financial advice or any legal, auditing, accounting, appraisal, valuation or actuarial services. A rating should not be viewed as a replacement for such advice or services,” the agreement says.

“You warrant that all information you or your agents provide to Fitch, as of the date such information is provided, (i) contains no untrue statement of material fact and does not omit a material fact necessary in order to make such information, in light of the circumstances in which it was provided, not misleading and (ii) does not infringe or violate the intellectual property rights of a third party,” it adds.

Ratings by credit agencies are considered crucial by both international investors and financial institutions when assessing the strength of a particular economy. Malta has been enjoying positive credit ratings by major agencies, reflecting a significant growth cycle of the economy.

Read: Fitch is given €40,000 annual direct order

Information given by Prof. Scicluna shows that, until 2013, credit rating exercises cost the government about €80,000 a year, rising to €230,000 last year.

The government would not say how much it pays each of the four credit rating agencies: Fitch, Standard & Poor’s, Moody’s and DBRS. However, official information related to direct orders published on the Malta Government Gazette shows that Fitch is receiving €40,000 a year though details on individual payments to the other agencies have not been published yet.

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