Andorra's government continues to pursue its reform agenda, the country's economy is gradually recovering, government finances remain under control, and the financial sector has stabilized. As a result, we are affirming our 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Andorra. 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 Jan. 27, 2017, S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on the Principality of Andorra. The outlook remains stable. The affirmation reflects our view about
