Marco Gatti

San Marino and the EU Association Agreement: S&P Global Ratings upgrades San Marino’s rating by two notches, consolidating the country’s international position

The Ministry of Finance and Budget announces with satisfaction that S&P Global Ratings has raised the Republic of San Marino’s sovereign rating by two notches, from BBB-/A-3 to BBB+/A-2. The promotion, which confirms the stable outlook, is clear and further recognition of the country’s solid recovery and development trajectory..

This recognition is part of a series of positive ratings issued by other prestigious agencies, including Fitch Ratings, Morningstar and DBRS. These agencies have also emphasised the Republic’s resilience and economic progress. The rating agency has highlighted the significant improvement in net debt parameters and more detailed external data — a tangible result of the fruitful cooperation with the International Monetary Fund. This synergy has made it possible to have more completed data, particularly on external accounts, revealing a much more robust position than previously estimated in a conservative manner.

A distinctive feature of S&P’s analysis is the way it has revised the assessment of net public debt. This revision now takes into account all liquid assets, including those of the Social Security Fund, in line with other countries. In this regard, S&P Global Ratings has clarified that resources that are not directly attributable to State liquidity can only be used following the introduction of appropriate legislative reforms in order to address exceptional circumstances. This clarification emphasises the caution and foresight that is required in the management of all domestic reserves, preserving their nature as strategic buffers.

Careful management of domestic resources is crucial in protecting the financial structure of the entire State from unpredictable shocks, ensuring sustainability and the capacity to cope with global critical issues.

The S&P report also highlights the imminent implementation of the Association Agreement with the European Union as a factor that will promote stability and development. Such Agreement is seen as a key foundation for governance standards and a catalyst for trade and economic growth.. The Association Agreement with the European Union, which is expected to be implemented in 2026, is set to play a pivotal role in San Marino’s growth prospects, promoting greater integration into the Single Market and strengthening economic and financial relations. The government’s implementation of essential reforms, such as those concerning the labour market and the pension system, has also viewed positively.

At the same time, progress is acknowledged in the ongoing restructuring of the banking sector, thanks to the establishment of an Asset Management Company (AMC) and the constant reduction of non-performing loans (NPLs), even though their level remains higher than the European average.

Upgrading its long-term and short-term ratings in both foreign and local currencies from BBB-/A-3 to BBB+/A-2 reinforces the perception of a country that is consolidating its reliability and attractiveness in the international financial landscape through a rigorous approach and strategic vision. The fact that the San Marino system has maintained its AAA rating for transferability and convertibility further confirms its soundness..

This favourable outcome reflects the Republic of San Marino’s constant commitment and determination to pursue a path of fiscal balance, structural modernisation and strengthening of its international profile. This result instils renewed confidence and is a significant step towards San Marino’s further development.

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Today, Monday 7 April 2025, the Minister of Finance and Budget, Marco Gatti, together with a delegation from the International Monetary Fund, visited the SIT Group in San Marino. Established over 50 years ago, SIT has established itself as a leader in its field with an unwavering commitment to excellence and quality.

In 2025 the general income reform and then the VAT.

The economic situation of San Marino has improved significantly over the last few years, especially considering that the international context has faced major challenges such as the pandemic, the energy crisis, the increase in the cost of raw materials, inflation and wars.

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On the evening of 15 November 2024, the Morningstar DBRS ratings agency published a report confirming the rating for the Republic of San Marino at BBB (low).

San Marino rated “BBB-/A-3” by S&P Global Ratings

The economic situation in San Marino is showing positive signs, as highlighted in the S&P report. The main aspects and considerations for the country’s growth and economic stability emerging from the report are as follows: