Andorra's economic and budgetary performance outperformed official targets in 2021 and during the first quarter of 2022. The Andorran regulator's intervention in the case of Banca Privada d'Andorra in 2015 has had no permanent impact on the country's public finances. The Russia-Ukraine conflict and its impulse to global inflation will weigh on GDP growth in Andorra and its key European trading partners over the next 12 months, although Andorra's underlying macroeconomic fundamentals have improved since we last reviewed the rating. Therefore, we have raised our long-term sovereign rating on Andorra to 'BBB+' from 'BBB' and assigned a stable outlook. On July 15, 2022, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Andorra to 'BBB+'
