Standard & Poor’s reaffirms Andorra’s BBB / A-2 rating and consolidates its stable outlook

The rating agency Standard & Poor’s reaffirmed the Principality’s rating at BBB / A-2 and maintains the stable outlook. The evaluators stressed the positive evolution of the real GDP, economic growth and prudent tax policies. For its part, the Government welcomes the consolidation of the current rating and the stable outlook and hopes the reforms carried out together with the the economic forecast will improve the rating in future reports.

 In the last report published this Friday, July 20th, the agency pointed out, again, the country’s rating may improve once the Association Agreement with the EU is concluded. The evaluators also insist that membership of the International Monetary Fund would give the country’s financial system greater stability, facilitate the management of potential crises and also improve the rating. The report also aims to improve the availability of statistical data derived from the Statistical Plan 2018-2021 for future evaluations.

Standard & Poor’s warns of the weight of the financial sector, although expectations of growing economic activity and the performance of the tax policies implemented may nuance this weakness.

Text: Govern d’Andorra