S&P Upgrades Andorra’s Credit Ratings
by Ulrika Lomas, Tax-News.com, Brussels
20 August 2004

Ratings agency Standard & Poor's has it raised its long-term sovereign credit rating on Andorra to "AA" from "AA-" following an improvement in the country's fiscal position.

Noting a "a wealthy economy, a competitive services sector and a stable political and institutional framework,” the S&P analysis stated:

"The upgrade reflects Andorra's improved fiscal position, supported by recent fiscal reforms aimed at preserving the general government surplus and net creditor position,"

Furthermore, the ratings agency affirmed its "A-1+" short-term sovereign credit rating on the principality whilst also maintaining a stable outlook.

"The upgrade also reflects the principality's healthy medium-term growth prospects," said S&P.

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