The Andorran Financial Authority has published an update on Moody's confirmation of Andorra's sovereign rating at Baa1 with a positive outlook. The rating agency pointed to strong public finances, low debt and a solid institutional framework, while also noting that recent changes to the Eurosystem repo mechanism for central banks outside the euro area should strengthen the stability and liquidity of Andorra's financial system. Moody's assessment also highlighted Andorra's robust fiscal position, supported by a significant stock of public financial assets that can absorb potential risks. It cited gross domestic product growth of 3.9% in 2025, which helped raise public revenues without increasing the tax burden, produced a budget surplus and allowed the debt-to-gross domestic product ratio to keep falling. The positive outlook was also linked to opportunities from the Association Agreement with the European Union, which Moody's said could support economic diversification and a future sovereign rating upgrade.
Andorran Financial Authority2026-07-13
Andorran Financial Authority reports Moody's affirmation of Andorra's Baa1 sovereign rating with positive outlook
The Andorran Financial Authority said Moody's has affirmed Andorra's Baa1 sovereign rating with a positive outlook. Moody's cited strong public finances, low debt and institutional strength, and said changes to the Eurosystem repo mechanism for non-euro area central banks should support Andorra's financial stability and liquidity. It also pointed to 3.9% gross domestic product growth in 2025 and potential gains from the European Union Association Agreement.