Andorra's economy is recovering, underpinning improving fiscal performance. We are raising our long- and short-term ratings on Andorra to 'BBB/A-2' from 'BBB-/A-3'. The stable outlook reflects the balance between risks arising from Andorra's large international financial sector and ongoing improvements in financial oversight that may mitigate these risks. On July 28, 2017, S&P Global Ratings raised its long- and short-term foreign and local currency sovereign ratings on the Principality of Andorra to 'BBB/A-2' from 'BBB-/A-3'. The outlook is stable. The rating action reflects the resilience of Andorra's economy and public finances in the face of the collapse of Banca Privada d'Andorra (BPA). The stable outlook reflects our opinion that the risks to Andorra's creditworthiness will be balanced between recovering growth
