On August 10 Fitch Ratings upgraded Andorra’s rating to BBB+ with a stable outlook. The Agency also improved the short-term foreign currency to F2 from F3 as well as the country ceiling which has been revised to A+ from A-.
The agency highlighted the fact that in 2017, public sector indebtedness fell below 40% for the first time since 2011 and that the Government recorded a small surplus of 9 million euro. The agency expects the stabilisations of activity in the financial sector and positive growth dynamics in other sectors to translate to overall real GDP growth in the next years.
The upgrade reflects the balance between the country’s wealth, political stability, the improvement of public finances and financial flexibility.
The effort made by the Andorran authorities to continue to align the regulatory environment, especially in the financial sector, with international and European standards, including the adoption of international standards of transparency and exchange of information for tax purposes are viewed positively by the Agency.