The international rating agency S&P Global Ratings has once again awarded Liechtenstein its top rating and confirmed its triple A with stable outlook as part of the semi-annual review of the country rating.
According to the rating agency’s report, the retention of the top rating is based on the fact that Liechtenstein’s strong fiscal position, extensive financial buffers, as well as its high political effectiveness and prudent regulatory framework will protect the Principality from the economic impact of the war in Ukraine and the deterioration of global financial conditions.
S&P Global Ratings expects Liechtenstein’s economy to recover gradually in 2023. Its slow growth this year mainly reflects the indirect consequences of the war between Russia and Ukraine, weaker external demand, inflationary pressures, monetary tightening and concerns about the recent global banking turmoil.
In addition, Liechtenstein has built up a gas reserve that covers the country’s energy needs for two to three winter months and will be maintained at least until 2025. Although the immediate energy situation has eased since the summer of 2022, Liechtenstein’s energy supply remains dependent on supplies from Germany and Austria.
The rating agency notes that Liechtenstein’s economy has been able to adapt very quickly to economic changes in the past. Moreover, being a small economy, Liechtenstein is more exposed to changes in international norms. However, the agency still expects the Liechtenstein government to continue its track record of proactive and rapid adoption of international standards and cross-border cooperation. Furthermore, S&P Global Ratings welcomes Liechtenstein’s efforts to join the IMF and expects this to provide additional statistical baseline data.
Prime Minister Daniel Risch expresses his delight at the reaffirmation of the triple-A rating by S&P Global Ratings. This top rating for Liechtenstein should not be taken for granted in a continuing challenging geopolitical and economic environment. The rating confirms Liechtenstein’s attractiveness as a secure and stable business location and shows how important it is to act proactively and create good framework conditions for the economy.
Apart from Liechtenstein, only Denmark, Germany, Luxembourg, the Netherlands, Norway, Sweden and Switzerland hold this top rating in Europe. Outside Europe, Australia, Canada and Singapore rank among them.
