Once approved, mostly likely in 2025, Andorra's association agreement with the EU will benefit the economy by expanding and diversifying exports. The country uses the euro without being a member of the Eurosystem and does not have access European Central Bank liquidity. This constrains its flexibility in the event of a future external shock, despite major enhancements to liquidity management in Andorra's financial sector in recent years. The upcoming technical assistance mission from the IMF is helping authorities improve the granularity of external data, especially regarding external debt levels, thereby benefiting transparency and economic risk surveillance. Therefore, we affirmed our 'A-/A-2' ratings on Andorra. The outlook is positive. On Nov. 8, 2024, S&P Global Ratings affirmed its 'A-/A-2' long- and
