Standard & Poor’s agency raised its forecast of Andorra’s rating from “negative” to “stable”

Standard & Poor’s agency raised its forecast of Andorra’s rating from “negative” to “stable” – now Andorra has a rating BBB- / A-3. This data is contained in the official agency report which states, however, that “the process of settlement of the conflict with the Banca Privada d’Andorra (BPA) by the authorities of Andorra (Pyrenees) has caused a number of side effects, which limits the growth prospects of the economy of Andorra and its banking sector.”

In addition, according to the agency, there remains the possibility of risk which correlates to the size of the financial sector of the principality. However, the continuing improvement of the Andorran economy should enable the government of Andorra to increase fiscal sustainability and reduce the debt, according to Standard & Poor’s report.

On the other hand, the agency mentions a statement by the Financial Crimes Enforcement Network (FinCEN) – US Treasury Department’s Bureau, which is responsible for the collection and analysis of information on financial transactions to combat domestic and international money laundering and terrorist financing. On 19th February 2016 FinCEN has expressed satisfaction with the BPA restructuring and sale of the new entity’s assets – bank Vallbanc – US investment fund JC Flowers.

Standard & Poor’s positively assessed the intention of the Government of Andorra to cooperate with international financial institutions and the International Monetary Fund, noting that such cooperation will contribute to the stabilization of the Andorran financial system and help overcome the effects of financial crises in the future. The agency also notes that the country’s rating could rise further if the economic recovery is secured.

See also Andorra business guide

See also Andorra company formation

Read more: All Andorra news ...