Standard & Poor’s confirms ratings of Andorra at BBB- /A-3. According to the Government of Andorra, the agency reviewed positively the country “reaffirming the stable outlook, the continuity in Andorran reform’s agenda, the balanced budget policies, the economy recovery and its sustained growth and its financial system’s stability”.

The rating agency described as positive the automatic exchange of tax information, considering it as a necessary step towards the convergence of Andorran regulation with international practices, being as well a key element in the negotiations towards an Andorran association agreement with in Europe. The agency also praised the adoption by the country’s financial system of the European accounting standards, making it more transparent and comparable to other jurisdictions.
Standard & Poor’s considers negotiations between the Government of Andorra and financial institutions such as the International Monetary Fund would be a way to improve the stability of the country’s financial system, hence managing or eventually preventing possible future financial crises and their consequences.

The agency finally stated that, any costs for compensation by the Government in the unlikely legal proceeding event, arising from the BPA situation, would downgrade the country’s rating. Likewise, evaluators added the rating forecast may improve as Andorra continues in its international commitments and the country’s economic recovery remains stable.