Fitch Confirms Malta’s ‘A’ Rating And Stable Outlook

Malta's stability has been given an important endorsement this month following credit rating agency's Fitch to confirm Malta's 'A' rating and stable outlook. The report also confirms the stability of the financial jurisdiction, commenting that despite its size, the banking sector is strong and has proved resilient to the eurozone crisis. Fitch remarks that "the core domestic banks have a loan/deposit ratio of only around 66% and have not been drawing on any significant amount of ECB liquidity facilities. Banks are well-capitalised and the government has not needed to provide capital or liquidity."

Malta also has a robust net external creditor position relative to rating peers and positive international investment position. The banking sector is the main contributor, but the sovereign also enjoys modest net external creditor status, adds Fitch.