The evaluation agency has published the latest rating of Andorra, in which it maintains the BBB rating with a positive outlook. In Fitch Ratings' sixth evaluation of the Principality's debt, the agency highlights "the reduction of public debt, improved diversification of fiscal financing and improved growth dynamics in the country,” according to the government yesterday.
The evaluation appreciates the principality's efforts to align financial sector legislation with international standards. Fitch ratings "particularly appreciates positively the adoption of international standards of transparency and exchange of tax information, as well as the fact that Andorra is no longer on the list of non- cooperating countries of the European Union, according to the government. On the other hand, Fitch highlights the balance between the country's economic capacity, the solidity of public finances and political stability with the small size of the economy, the risks associated with the weight of the banking sector and a deficient availability and frequency of economic data. Even with these advances, the Fitch Ratings agency continues to see as an important risk the weight of the financial sector in the country's economy.
Fitch explains that if Andorra wants to improve its rating must improve a series of points. One of the factors would be that public debt continues to fall as a percentage of gross domestic product. An improvement in medium-term growth prospects would also help. And finally, it would be convenient for Andorra to have more constant macroeconomic data that has the endorsement of some international organization.