Fitch Reaffirms Malta's ‘A' Rating

Fitch Ratings has confirmed Malta's Long-term rating at 'A', while also re-affirming a Stable Outlook.

In an announcement earlier this month, Fitch noted that Malta's capital markets remains very liquid, with the loan to deposit ratio of domestic banks at 63% in 1Q15. "The core banks, which have a balance sheet of around 260% of GDP, are well capitalised and delinquency portfolios have stabilised over the past year, while provisions for NPLs have increased." Positively, the credit rating agency notes that the regulatory environment has continued to evolve in the past six months, with a single-supervisory framework now in place and the establishment of a resolution fund. This should help underpin financial stability.