The Andorran Financial Authority published an update on Moody’s Ratings’ decision to upgrade Andorra’s credit outlook from stable to positive while maintaining the long-term rating at Baa1. The change was linked to economic strength and public finance performance in the 2025 fiscal year that exceeded initial forecasts. Moody’s highlighted sustained fiscal surpluses close to 3% of gross domestic product and low public debt of around 31% of gross domestic product across all public administrations. The agency also pointed to high per capita income, political stability, and the quality of the institutional and governance framework, while noting the structural challenges of a small and relatively undiversified economy. It added that an Association Agreement with the European Union could support diversification and resilience and be a key factor in a potential future rating upgrade.
Andorran Financial Authority 2026-01-26
Andorran Financial Authority reports Moody’s upgrades Andorra’s credit outlook to positive and affirms Baa1 rating
The Andorran Financial Authority reported Moody’s Ratings upgraded Andorra’s credit outlook from stable to positive, maintaining the long-term rating at Baa1, due to economic strength and fiscal performance in 2025. Moody’s cited fiscal surpluses near 3% of GDP, low public debt at 31% of GDP, high per capita income, and political stability, while noting structural challenges and the potential impact of an EU Association Agreement.