Back to Market News

Bank of Valletta plc – Fitch Upgrades BOV’s Ratings

Jonathan Falzon

March 28, 2025

28 March, 2025
3 min read
28 March, 2025
3 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

On 28 March 2025, BOV announced that Fitch Ratings has upgraded Bank of Valletta’s Long-Term Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB-‘ and the Viability Rating (VR) to ‘bbb’ from ‘bbb-‘. The rating agency also set the outlook on the Long-Term IDR as Stable. Fitch has also assigned BOV a long-term deposit rating of ‘BBB+’ and short-term deposit rating of ‘F2’.

BOV noted that the announcement by Fitch acknowledged BOV’s dominant domestic franchise, which has allowed the bank to consistently capture the profitable business opportunities offered by Malta’s benign operating environment, while maintaining adequate asset quality and capitalisation. Furthermore, the ratings reflect BOV’s leading domestic franchise, which contributes to the bank’s sound earnings generation despite limited business diversification, but also its small scale and concentrated operations in a small economy. Fitch recognised BOV’s lending standards and investment guidelines which are in line with global industry practices, and its risk framework has strengthened in line with regulatory expectations.

BOV also highlighted that this upgrade follows another upgrade in December 2024 by Standards & Poor’s (S&P) Global Ratings, which raised the long- and short-term issuer credit ratings on BOV to BBB/A-2 from BBB-/A-3. S&P Global Ratings also increased the long-term resolution counterparty rating (RCR) to BBB+ from BBB and affirmed an A-2 short-term RCR.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 28 March 2025, BOV announced that Fitch Ratings has upgraded Bank of Valletta’s Long-Term Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB-‘ and the Viability Rating (VR) to ‘bbb’ from ‘bbb-‘. The rating agency also set the outlook on the Long-Term IDR as Stable. Fitch has also assigned BOV a long-term deposit rating of ‘BBB+’ and short-term deposit rating of ‘F2’.

BOV noted that the announcement by Fitch acknowledged BOV’s dominant domestic franchise, which has allowed the bank to consistently capture the profitable business opportunities offered by Malta’s benign operating environment, while maintaining adequate asset quality and capitalisation. Furthermore, the ratings reflect BOV’s leading domestic franchise, which contributes to the bank’s sound earnings generation despite limited business diversification, but also its small scale and concentrated operations in a small economy. Fitch recognised BOV’s lending standards and investment guidelines which are in line with global industry practices, and its risk framework has strengthened in line with regulatory expectations.

BOV also highlighted that this upgrade follows another upgrade in December 2024 by Standards & Poor’s (S&P) Global Ratings, which raised the long- and short-term issuer credit ratings on BOV to BBB/A-2 from BBB-/A-3. S&P Global Ratings also increased the long-term resolution counterparty rating (RCR) to BBB+ from BBB and affirmed an A-2 short-term RCR.