Stable outlook and improved growth prospects thanks to fiscal consolidation and the EU Association Agreement

S&P Global Ratings has raised San Marino’s sovereign rating from BBB-/A-3 to BBB+/A-2, while maintaining a stable outlook. This upgrade confirms the soundness of the country’s economic policies and the credibility of its financial reform path.

The announcement was made by the State Secretariat for Finance on August 1st and follows similar positive assessments from other major rating agencies such as Fitch Ratings and Morningstar DBRS.

One of the main aspects highlighted by S&P is the revised methodology for calculating net public debt, which now includes the liquid reserves of the Social Security Fund. This new approach shows a stronger financial position, further supported by cooperation with the International Monetary Fund.

However, S&P clarified that the use of these funds will only be possible through targeted legislative reforms and in exceptional circumstances, emphasizing the need for prudent management of national reserves.

The Association Agreement with the European Union, expected by 2026, is also viewed as a major catalyst for institutional stability and economic development.

Lastly, the agency welcomed the ongoing structural reforms, especially those concerning the labor market and the pension system, considering them essential for ensuring the long-term sustainability of San Marino’s public finances.

For more information, the full analysis by Standard & Poor’s is available.