Fitch Affirms Malta's A+ Rating But Cautions Fiscal Risks Despite Economic Growth

Fitch affirms A+ rating for Malta with a stable outlook, citing economic resilience and high growth despite headwinds
But large fiscal deficits weighing on public finances and national debt gradually increasing
Inflation remains high at 5.8% despite energy subsidies, wage growth robust
GDP growth strong at 3.5% in 2023, outpacing A-rated peers, unemployment at record lows
Concerns over impact of subsidies on medium-term fiscal position, progress needed on governance and supervision

timesofmalta.com

Relevant topic timeline:

8/1/2023

Fitch downgrades U.S. credit rating from top score after debt ceiling crisis

Main Topic: Fitch downgrades U.S. credit rating from AAA to AA+ due to erosion of governance and political brinkmanship over the debt ceiling. Key Points: 1. Fitch cites a deterioration in standards of governance, including fiscal and debt matters, over the past 20 years. 2. The U.S. still holds a high rating of AA+ due to its large, advanced, well-diversified, and high-income economy. 3. Concerns arise over the risk of missing debt payments in the future and the impact of partisan wrangling on the country's fiscal management.

8/2/2023

White House blames GOP after Fitch downgrades U.S. credit rating

Main Topic: Fitch credit downgrade of the U.S. debt rating Key Points: 1. Fitch Ratings Agency downgraded the U.S. debt rating from AAA to AA+ due to a congressional standoff and the events of January 6. 2. The White House and Biden campaign blame the GOP for the downgrade, citing extremism and previous actions by Republican officials. 3. The downgrade is criticized by economic experts and referred to as a "Trump downgrade" by the Biden campaign, highlighting the impact of previous policies and statements by former President Donald Trump.

8/2/2023

What the U.S. credit downgrade means for taxpayers and consumers

Main Topic: The U.S. credit rating downgrade by Fitch and its implications for taxpayers and consumers. Key Points: 1. The immediate impact on taxpayers and consumers is minimal, as borrowing costs and mortgage rates are not expected to be significantly affected. 2. The credit downgrade serves as a warning about the U.S. government's long-term fiscal health and the risks associated with political conflicts over the debt ceiling. 3. While investors currently view U.S. Treasuries as a safe investment, the downgrade highlights the need for the U.S. to address its fiscal problems and take steps to ensure it can meet its obligations in the future.

8/21/2023

Fitch, BRICS, Ukraine: Why US Economic And Political Hegemony Is In Long-Term Decline

Fitch's recent downgrade of US government debt reflects concerns over the country's deteriorating fiscal governance standards and the unlikely prospects of serious fiscal reform, signaling a change in perceptions that may have more damaging effects than the 2011 downgrade by S&P; factors such as broken supply chains, rising inflation, and a shift away from the US dollar as a safe haven currency contribute to a potential US slowdown and impact on global economic power.

8/21/2023

Fitch sees ‘watered down’ judicial overhaul not having doomsday effect on economy

Despite the weakening Israeli shekel and concerns over proposed changes to the country's judicial system, Fitch Ratings believes that the modifications have been sufficiently diluted to avoid causing long-term damage to Israel's resilient economy. Fitch's decision to affirm Israel's credit rating is based on the expectation that the government will not move towards a hard-rightwing stance and that Israel will continue to attract investment and talent.

10/4/2023

Fitch: Potential US shutdown won't hurt credit rating, which already factors governance issues

Rating agency Fitch warns about a possible government shutdown after the ousting of U.S. House Speaker Kevin McCarthy, but states that it would not impact the country's sovereign rating as the governance issues are already factored in.

Topics

Posted 9/16/2023, 5:11:00 AM

Fitch Affirms Malta's A+ Rating But Cautions Fiscal Risks Despite Economic Growth

Fitch affirms A+ rating for Malta with a stable outlook, citing economic resilience and high growth despite headwinds
But large fiscal deficits weighing on public finances and national debt gradually increasing
Inflation remains high at 5.8% despite energy subsidies, wage growth robust
GDP growth strong at 3.5% in 2023, outpacing A-rated peers, unemployment at record lows
Concerns over impact of subsidies on medium-term fiscal position, progress needed on governance and supervision

timesofmalta.com

Relevant topic timeline:

8/1/2023

Fitch downgrades U.S. credit rating from top score after debt ceiling crisis

8/2/2023

White House blames GOP after Fitch downgrades U.S. credit rating

8/2/2023

What the U.S. credit downgrade means for taxpayers and consumers

8/21/2023

Fitch, BRICS, Ukraine: Why US Economic And Political Hegemony Is In Long-Term Decline

8/21/2023

Fitch sees ‘watered down’ judicial overhaul not having doomsday effect on economy

10/4/2023

Fitch: Potential US shutdown won't hurt credit rating, which already factors governance issues