Fitch turns San Marino view to positive

Fitch Ratings said it revised its outlook for San Marino to positive from stable and affirmed its BB issuer default and senior unsecured ratings.

“Steady improvement in some key sector metrics have lessened the risk Sammarinese banks pose for the government's balance sheet, in Fitch's opinion. Despite external headwinds, the sector's solvency ratio increased to 15.8% as of June 2023, from 9.5% at end-2019, and liquidity ratios have steadily improved, with liquid assets to short-term liabilities increasing to 44.7% as of 2Q23 from 27.0% in 1Q19,” Fitch said in a press release.

However, Fitch noted the country’s bank cost structure remains very high.

The agency said it estimates public debt will dip below 70% of GDP by end-2023, down from a peak of 76.6% at end-2021, and to below 60% by end-2027.

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