Standard & Poor’s reaffirms Andorra’s current rating “BBB / A-2”, which was improved in July, and maintains the stable outlook. The rating, published on Friday, January 19th, values the reforms agenda carried out, the country’s solid economic activity, the positive tax results and the adaptation to international standards that enables a positive vision of Andorra abroad.

 The evaluators consider a rating upgrade is possible if negotiations with the European Union are concluded through an association agreement. Andorra’s rapprochement to financial institutions such as the International Monetary Fund would also be positive, since it could provide greater stability to the Principality’s financial system and facilitate the prevention and management of possible crises that may arise. The agency has also pointed out the positive impact on future evaluations when the Pla Estadístic 2018-2021 is approved by the General Council.

The published note assesses the evolution and progress in the supervisory and control systems carried out by the Andorran National Institute of Finance and the Financial Intelligence Unit, considering the potential risks derived from the size of the country and the weight of the financial system on the economy.

In this regard, Standard & Poor’s insists on improving risk management policies by adopting international standards and refers, in particular, to the provisional qualification of “Largely Compliant” obtained by the Principality in relation to information exchange standards on demand.
 
Text: Govern d’Andorra