DBRS Ratings Limited has upgraded the Republic of Malta's
Long-Term Foreign and Local Currency – Issuer Ratings to A
(high) from A and upgraded its Short-Term Foreign and Local
Currency – Issuer Ratings to R-1 (middle) from R-1 (low). The
trend on all ratings has been changed to Stable from Positive.
The rating upgrade reflects DBRS's assessment that the
trajectory of Malta's public debt has improved considerably.
Since DBRS's latest review, the projection of the general
government debt ratio has been materially revised downwards due to
more favourable growth prospects and stronger primary balances in
coming years. The debt-to-GDP ratio is now forecast to decrease to
41.2% of GDP by 2022, almost seven percentage points less than
previously anticipated. In 2017, the government is expected to have
exceeded its fiscal objective and reduced its debt ratio thanks to
stronger-than-expected revenues. Improvements in the "Debt and
Liquidity", "Economic Structure and
