S&P Affirms Malta’s A- Rating as Fiscal Position Improves

S&P affirms Malta’s A- rating, keeps stable outlook amid global uncertainty

S&P Global Ratings has reaffirmed Malta’s sovereign credit rating at A- with a stable outlook, maintaining its assessment of the country’s creditworthiness despite a more uncertain global economic environment. The decision leaves Malta’s rating unchanged and signals continued confidence in the country’s economic growth prospects and fiscal trajectory. Unlike previous reviews, however, S&P did not publish a new analytical report alongside the rating action, effectively maintaining the assessment issued in December 2025.

No new report issued as S&P maintains December 2025 assessment

In its previous review, the agency projected Malta’s economy would continue to outperform the eurozone average, with annual growth close to 4% over the medium term. S&P also expected public finances to strengthen, with the budget deficit falling below the European Union’s 3% threshold and public debt remaining comparatively low by European standards.

Malta still expected to outperform eurozone growth, S&P reiterates

Recent developments have broadly supported that outlook. Malta has moved out of the EU’s Excessive Deficit Procedure after reducing its fiscal deficit below the required threshold earlier than anticipated. At the same time, structural challenges remain. Previous S&P assessments highlighted the fiscal cost of energy support measures, as well as governance and institutional risks that could affect the country’s long-term economic profile.

Exit from EU Excessive Deficit Procedure reinforces fiscal progress

For investors, the latest review suggests that Malta continues to benefit from a relatively favorable macroeconomic position. The stable outlook indicates that S&P does not currently foresee material changes to the country’s credit profile over the near term. At the same time, structural challenges remain. Previous S&P assessments highlighted the fiscal cost of energy support measures, as well as governance and institutional risks that could affect the country’s long-term economic profile. For investors, the latest review suggests that Malta continues to benefit from a relatively favorable macroeconomic position. The stable outlook indicates that S&P does not currently foresee material changes to the country’s credit profile over the near term.

Sources and References

S&P Global Ratings review as reported by The Malta Independent, MaltaToday, TVM News