S&P AAA rating confirmed again – outlook still stable
In its research update at the end of November 2020, the international rating agency Standard & Poor's (S&P) once again confirmed Liechtenstein's country rating of AAA, the best rating possible. It is especially positive that the outlook remains stable, despite the challenges in overcoming the COVID-19 crisis.
Liechtenstein thus continues to be one of the very few countries in the world with the highest S&P rating. Although the agency expects a slowdown of Liechtenstein’s economy due to the COVID-19 pandemic, it still considers Liechtenstein to be well equipped for the future due to its healthy financial position.
It is of especially positive note that the rating report emphasises Liechtenstein's strengths so clearly. First of all, the rating agency mentions the broadly diversified national economy with a particularly strong industrial sector and world market leaders in their respective niches, which distinguishes Liechtenstein from other smaller financial centres. EEA membership gives financial centre participants unhindered access to the European single market and thus to about 500 million customers. The short channels of communication also constitute a clear advantage over other locations internationally. These allow Liechtenstein to react quickly and efficiently to political and economic changes that affect business conditions. The labour market, which is still robust and at full employment despite the coronavirus crisis, makes Liechtenstein an attractive place for workers from neighbouring countries. The rating report does show, however, that the availability especially of external data on Liechtenstein is still lagging.
The Liechtenstein Bankers Association (LBA) is very pleased that, thanks to their exceptionally good capitalisation, banks are able to make a significant contribution to the stability of the country and to the current efforts to overcome the crisis. The banking centre stands for stability, sustainability, and quality – today and tomorrow. Compliance with European and international standards is a basic prerequisite.
At the same time, the LBA is equally aware that this good starting position is not guaranteed. For that reason, the LBA is currently working with its members on a further development of Roadmap 2020 and will continue to advocate for Liechtenstein membership in the International Monetary Fund (IMF). IMF membership would further strengthen Liechtenstein's stability and resilience.
