Fitch reaffirms Andorra's 'BBB +' rating

Stable Outlook

06/08/2019

The evaluation agency Fitch Ratings has reaffirmed Andorra's rating at BBB + and the stable outlook. In the note published by the agency this Friday night, the evaluators recognize the continuity of the Government in the policies of alignment with international standards. The agency has also highlighted Andorra's departure from the EU list of non-cooperative tax jurisdictions.

The rating agency positively assesses the balanced budgetary management of the Executive, based on a moderate and comparable fiscal framework and a progressive decrease in public debt and highlights the strong fiscal framework and positive economic developments.

They also highlight the willingness expressed by Andorra to join the International Monetary Fund that could mean an improvement in Andorra's rating, as well as the evolution of negotiations for an Association Agreement with the European Union that would allow access to the internal market.

Likewise, Fitch Ratings points out some factors that could lead to an increase in the rating in future evaluations, such as the reduction of the risk of contingent liabilities of the banking sector, the improvement of quality and the continuous decrease of public debt in relation to GDP, or the improvement in the prospects for GDP growth in the medium term.

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Source: The Government of Andorra´s Department of Communication - FitchRatings