The Andorran Financial Authority published an update noting that Moody’s Ratings has changed the outlook on Andorra’s long-term credit rating from stable to positive while maintaining the Baa1 rating, citing stronger-than-expected economic performance and public finances in 2025. Moody’s highlighted sustained fiscal surpluses close to 3% of GDP and comparatively low public debt of around 31% of GDP across the general government. It also pointed to high per capita income, political stability, and the quality of the institutional and governance framework, while noting structural challenges linked to the economy’s small size and limited diversification. Moody’s added that an Association Agreement with the European Union could support diversification and resilience and could be an important factor in any future rating upgrade.
Andorran Financial Authority 2026-01-26
Andorran Financial Authority notes Moody’s revises Andorra’s outlook to positive and affirms Baa1 rating
Moody’s revised Andorra’s long-term credit outlook from stable to positive, maintaining the Baa1 rating due to strong economic performance and fiscal health in 2025. Fiscal surpluses near 3% of GDP, low public debt at 31% of GDP, high per capita income, and political stability were cited, despite challenges from the economy's small size and limited diversification. An Association Agreement with the EU could enhance diversification and resilience, potentially influencing future rating upgrades.