Standard & Poor’s raises Albania outlook to positive from stable
Standard & Poor’s Ratings Services said it has revised its outlook on Albania to positive from stable while affirming the country’s B/B long- and short-term sovereign credit ratings.
According to the report published on 10th October, the Agency stated that Albania has shown e steady progress in its way of fiscal consolidation for the 2014 – 2016 period and has start to decline its general debt relative to GDP.
The report also notes that the new government in office since fall 2013 is moving forward on its ambitious reform agenda, aiming to strengthen fiscal institutions and public sector financial management, and mitigate fiscal risks. After recently passing a pension reform, the government now faces the key task of shaping a comprehensive energy sector reform over the coming months. The agreed arrangement with the International Monetary Fund (IMF) in early 2014 provides the government with a policy anchor for needed reforms, while supporting its financing needs, notes the report.
The Agency has maintained its assumption that net general government debt will start to decline relative to GDP, decreasing to 61% by 2017 from 66% in 2015.
The positive outlook reflects the possibility that the Agency could upgrade Albania in the next 12 months, if fiscal consolidation proceeds swiftly on the back of accelerated growth in the coming year.
Source of information: Standard & Poor’s website
(October 17, 2014)