The Andorran Financial Authority published an update noting that Moody’s Ratings has affirmed Andorra’s sovereign rating at Baa1 with a stable outlook, citing strong macroeconomic and institutional fundamentals and continued fiscal strength. Moody’s highlighted solid economic growth, high per capita income, a robust institutional framework and sound public financial management, including a fiscal surplus of 2.2% of GDP in 2024 and moderate debt levels. The stable outlook reflects expectations that Andorra will sustain a strong fiscal position over the medium to long term, while continued structural reforms, particularly on pensions and healthcare, were flagged as important to address demographic pressures. Moody’s also pointed to the Association Agreement with the European Union as an opportunity to diversify the economy and as a potential positive factor for a future rating upgrade.
Andorran Financial Authority 2025-07-21
Andorran Financial Authority reports Moody’s maintains Andorra’s Baa1 rating with stable outlook
The Andorran Financial Authority announced that Moody’s Ratings has affirmed Andorra’s sovereign rating at Baa1 with a stable outlook, citing strong macroeconomic and institutional fundamentals. Moody’s noted solid economic growth, a fiscal surplus of 2.2% of GDP in 2024, and moderate debt levels. The stable outlook is supported by expectations of sustained fiscal strength and potential economic diversification through an EU Association Agreement.