Standard & Poor’s has raised the sovereign rating of the Republic of San Marino from BBB+ to A-, while confirming a stable outlook. The upgrade is a significant signal for the country as a whole, placing San Marino in a higher tier of the investment-grade category.

According to the agency’s report, the upgrade is based primarily on three factors: solid economic performance, prudent fiscal management, and improved financial stability.

Particular emphasis is placed on the strengthened capacity of the Central Bank of the Republic of San Marino to act as lender of last resort, also thanks to access to the European Central Bank’s EUREP liquidity facility. According to S&P, this instrument helps reinforce the credibility of the country’s monetary policy.

The positive assessment also takes into account the strength of the institutions, budget performance, the surplus in the balance of payments, and the management of public debt. Forecasts indicate a net public debt-to-GDP ratio of 38% by 2029.

The report also draws attention to the path of public spending containment through measures to rationalize costs, subsidies, and transfers, as well as possible organizational interventions concerning certain functions of the public administration.

The banking sector remains under close monitoring, despite signs of gradual strengthening. S&P views positively the measures aimed at reducing non-performing exposures, including through the NPL securitization project, while also highlighting the evolution of the business model of San Marino’s banking institutions.

Tourism is also cited among the favorable factors, as it continues to post positive results. The stated objective is to improve the quality of the offering and lengthen the average stay, while enhancing tourism segments with higher spending capacity.

A further forward-looking factor concerns the implementation of the Association Agreement with the European Union, which S&P considers an opportunity to support economic diversification, attract foreign direct investment, and broaden access to the European single market.

For businesses, professionals, and investors, the rating upgrade is an important indicator of the reliability of San Marino’s economic system and can help strengthen confidence in the country, also from the perspective of growth, investment, and international relations.