Standard & Poor's reaffirms the BBB / A-2 rating in Andorra and consolidates the stable outlook

The rating agency Standard & Poor's has reaffirmed the Principality´s rating at BBB/A-2 and maintains a stable outlook. The evaluators have reviewed the positive evolution of real GDP, economic growth and the implementation of prudential fiscal policies. The government celebrates the consolidation of the current rating, and the stable outlook in particular, and is confident that the reforms undertaken and the improvement of the economy will become a new impetus for an improved rating in future evaluations.

In the article published on Friday night, the qualifying agency indicates, once again, that the country´s rating can be improved once the Association Agreement with the EU is closed. Evaluators also insist that joining the International Monetary Fund would give the country greater stability in the Principality´s financial system, facilitate the management of crises that may arise, and could also improve the rating. The report also aims to improve the availability of statistical data derived from the 2018-2021 Statistical Plan for future evaluations.

Standard & Poor's highlights the evolution of the reform agenda carried out by the Government, which has aligned Andorra with the international regulatory and supervisory practices. Incidentally, the evaluators have valued the high parliamentary consensus in the approval of regulations in this field adapted to international standards. The article also highlights the impetus of effective economic and fiscal policies and the sustainability of public finances.

The rating agency points out the risks in the Principality´s economy that derive from the weight of the financial sector, but it is matched by the expectations of the growing economic activity and the performance of the implemented fiscal policies.

Source: The Government of Andorra´s Department of Communication