Malta Maintains A Credit Rating with Stable Outlook from Morningstar DBRS

Morningstar DBRS has confirmed the Republic of Malta’s Long-Term Foreign and Local Currency Issuer Ratings at A (high) with a Stable trend, reflecting balanced risks to the country’s economic and fiscal outlook.

The agency noted that Malta’s economy remains strong but is gradually moderating, with GDP growth projected to ease from 5.9% in 2024 to 3.9% in 2025 and 3.5% in 2026, according to the Central Bank of Malta.

Fiscal pressures remain elevated due to continued household support and energy subsidies, though the budget deficit is expected to narrow from 3.6% of GDP in 2024 to 3.0% by 2026.

Public debt remains moderate at 46.2% of GDP, providing fiscal space compared to other Euro area economies.

Morningstar DBRS highlighted Eurozone membership, a solid external position, and a well-capitalized banking sector as key strengths supporting Malta’s credit profile.

The agency said the rating could be upgraded if fiscal performance strengthens and resilience to external shocks improves or downgraded if public debt rises significantly or governance reforms weaken.