Fitch reaffirms Andorra’s ‘A-’ rating with a Stable Outlook

Fitch Ratings has recently affirmed Andorra’s sovereign credit rating, maintaining its Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A-’ with a Stable Outlook. This decision reflects the country’s solid economic fundamentals in a challenging global environment, as well as the continued implementation of a prudent fiscal policy aimed at preserving macroeconomic stability.

The report highlights Andorra’s high GDP per capita and strong governance indicators, which compare favourably with peers in the same rating category, alongside a relatively low level of public debt. At the same time, Fitch points to certain structural challenges, including the small size of the economy and its limited diversification, as well as medium-term growth constraints linked to labour shortages and an ageing population.

Last Friday, 22 March, Fitch Ratings confirmed Andorra’s sovereign rating at ‘A-’ with a Stable Outlook, underscoring the country’s strong economic performance and institutional robustness.

Key highlights from the report:

• Economic growth above the euro zone: 2.8% in 2025, driven by the financial sector and construction.
• Fiscal and macroeconomic stability in a particularly challenging international context.
• Solid and resilient financial system: Andorran banks continue to demonstrate strong soundness indicators and resilience, and the regulatory and supervisory framework is aligned with European Union standards.
• Political stability and high institutional and regulatory quality.

Full report: Fitch Affirms Andorra at 'A-'; Outlook Stable

Investing in Andorra or relocating to a new country requires careful planning and expert guidance.

BDO – International experience. Local execution.

Cristina Camp

Senior Manager Responsable de Fiscalitat 
de BDO Andorra

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