In our opinion, the resolution process implemented by the Andorran authorities regarding Banca Privada d'Andorra has largely succeeded in limiting further adverse effects on Andorra's economic growth prospects and government finances. As a result, we are revising the outlook on Andorra to stable from negative and affirming our 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on the principality. The stable outlook balances remaining risks arising from Andorra's very large financial sector against our view that Andorra's economy will continue to recover, allowing the general government to post broadly balanced budget outcomes, while its net asset position gradually improves. On July 29, 2016, S&P Global Ratings revised its outlook on the Principality of Andorra to stable from
