Standard & Poor’s has upgraded Andorra’s credit rating to A-/A-1, reflecting the country’s robust economic performance. The rating agency’s latest report highlights Andorra’s enhanced economic resilience, fiscal discipline, and financial stability.
The agency notes the positive economic trajectory of the Principality and expresses optimism regarding a potential Association Agreement with the European Union. This is the second upgrade of Andorra’s rating during the current government’s tenure.
Andorra's economy is now considered stronger and more stable, with improved tax compliance among its citizens. The prestigious agency’s elevation of Andorra’s rating to A is seen by the government as a testament to the country’s solvency, supported by international recognitions such as this.
Standard & Poor’s bases its positive outlook on concrete data, asserting that the Association Agreement with the European Union could serve as a catalyst for economic diversification, alongside the strength of public finances and access to the European Central Bank’s Emergency Liquidity Assistance mechanism, which is designed to provide emergency liquidity in euros to the financial sectors of third countries.
Following a GDP growth of nearly 4% in 2025, the economy is expected to continue its upward trend, with an annual average growth rate of 2.1% projected over the next three years. Key drivers of this growth will include tourism, construction, and public investment.
This positive outlook enables Standard & Poor’s to assert that Andorra will continue to record budgetary and external surpluses, further bolstering its economic and financial strength.
