TIRANA, March 24 /ATA/ – Standard & Poor’s (S&P) Global Ratings Agency has raised its long-term foreign and local currency sovereign credit ratings on Albania to ‘BB’ from ‘BB-‘, with a stable outlook, reflecting the country’s strong economic and fiscal performance over the last several years.
In a statement, the Ratings Agency also &P affirmed its ‘B’ short-term foreign and local currency sovereign credit ratings and revised Albania’s transfer and convertibility (T&C) assessment to ‘BBB-‘ from ‘BB+’.
“Large net foreign direct investment (FDI), remittance inflows, and rapid increase of service exports underpin Albania’s solid economic prospects, despite elevated geopolitical tensions, and uncertainty ahead of this year’s parliamentary elections,” the Agency said.
S&P projects Albania’s real GDP growth to remain above 3% until 2028, driven by investment and consumption.
However, the Global Ratings Agency underlined that structural challenges persist, including shrinking workforce and sustained emigration, while its reliance on tourism and external demand from key EU markets adds economic vulnerability.
According to S&P, fiscal risks also persist due to high foreign currency debt, short domestic debt maturities, and substantial public-private partnership commitments.
The Agency also noted that diplomatic tensions with Greece could challenge its EU accession progress.
This is the second upward revision by S&P in a year. On March 23, 2024, the Agency upgraded Albania’s long-term sovereign credit rating for the first time to ‘BB-‘ from ‘B+’, highlighting the country’s improving fiscal and external position.
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