Andorra's response to the crisis at Banca Privada d'Andorra (BPA), including legal reforms and an orderly resolution process for the bank, has so far contained the ensuing risks to the financial system and the impact on the broader economy. We consider that Andorra has stable political institutions and strong fiscal and debt positions, but information gaps regarding the country's external data and our view on limited growth prospects and economic concentration risk constrain the ratings. We are affirming our 'BBB-/A-3' ratings on Andorra. The negative outlook indicates that we may lower the ratings on Andorra over the next 18-24 months if BPA's resolution fails to stabilize the bank, reforms in Andorra slowed, or other Andorran banks experienced financial distress, with
