Fitch affirms Malta’s A+ credit rating amid governance concerns

Fitch Ratings has affirmed Malta’s sovereign credit rating at A+ with a stable outlook, citing strong economic growth and high income per capita. The agency expects the economy to grow by nearly 4% this year and next, driven by sectors such as information technology, tourism, and financial services. Malta’s public debt is projected to stabilize at approximately 46% of GDP through 2028.

Despite the affirmation, Fitch highlighted risks regarding deteriorating governance indicators. The agency noted that Malta ranked 71st out of 84 countries in the World Bank’s 2024 Worldwide Governance Indicators, with a 20% decline in its corruption-control indicator between 2013 and 2024.

Fiscal concerns were also raised. While the deficit fell to 2.2% of GDP in 2025, recent data shows fluctuations, with the Q1 2026 deficit reaching €339m. Additionally, Fitch warned that energy subsidies, estimated at €230 million this year, may have long-term fiscal consequences by providing little incentive to reduce electricity consumption. Prime Minister Robert Abela responded by highlighting the country’s ability to lower the fiscal deficit and maintain stable fuel prices to limit inflation.