Moody’s reaffirms Malta’s A2 credit rating with stable outlook

Malta has retained its A2 sovereign credit rating with a stable outlook following the latest review by Moody’s, with the agency citing the country’s resilient economic growth, moderate debt levels and stable institutional framework.

The review, completed on 30th April, places Malta ahead of several European peers that have recently seen their outlooks revised to negative amid growing fiscal and geopolitical pressures.

In comments issued following the announcement, Prime Minister Robert Abela said the reaffirmed rating reflects international confidence in Malta’s economic direction and financial stability.

“While 5 EU countries have just been given a negative outlook on their rating by Moody’s, the international agency reaffirmed Malta’s A2 rating with a stable outlook based on our strong trend growth, moderate debt and strong institutional framework,” he wrote.

While 5 EU countries have just been given a negative outlook on their rating by Moody's, the international agency reaffirmed Malta's A2 rating with a stable outlook based on our strong trend growth, moderate debt and strong institutional framework – RA

— Robert Abela (@RobertAbela_MT) May 9, 2026

Moody’s noted that Malta’s economy is expected to continue outperforming the wider European Union, despite a slight downward revision in growth forecasts. The agency now expects Malta’s GDP to grow by 3.5 per cent in 2026, down from a previous estimate of 4 per cent, but still significantly above the EU average forecast of 2.2 per cent.

The agency also highlighted improvements in public finances, with Malta’s fiscal deficit narrowing to 2.2 per cent of GDP in 2025 from 3.4 per cent a year earlier. According to the review, stronger economic activity and improved tax revenue collection contributed to the better-than-expected fiscal performance.

Meanwhile, Malta’s public debt ratio is projected to remain broadly stable at around 46.3 per cent of GDP before gradually declining over the coming years.

Moody’s said Malta’s credit profile continues to benefit from limited exposure to external shocks and sustained economic momentum. However, the agency also warned that concerns surrounding the rule of law, corruption and anti-money laundering supervision remain ongoing challenges that require further progress.

The review additionally referred to Malta’s upcoming general election on 30th May, though Moody’s stated that it does not anticipate major policy shifts that would materially affect the country’s creditworthiness regardless of the electoral outcome.