The credit rating Moody’s agency in its latest periodic credit report on Albania, has reaffirmed that the country’s sovereign debt rating was unchanged at “B1 stable”. Moody`s has analyzed the risk factors and Albania’s progress in four directions, which constitute the main pillars of the assessment: economic strength, institutional strength, the banking sector and fiscal strength. The first three were estimated at moderate rates, while the fiscal strength was assessed at low rate. According to the report the key factors which stimulate the Albania’s lending in “B1 stable” were: (1) the progress made in clearing arrears and fiscal consolidation; (2) ongoing administrative and judicial reform efforts in pursuit of EU accession; (3) strong price stability; and (4) significant foreign direct investment inflows from large investment projects. Meanwhile, the main challenges, according to the report, were: (1) high, albeit declining government debt; (2) weak, albeit improving, domestic funding structure; (3) limited institutional strength, in particular with respect to corruption; and (4) the large stock of non-performing loans. The prestigious agency has projected that Albania’s economic growth for this year will be at 3.5% and 3.6% in 2018. “We expect the recovery in the Albania economy to continue. We expect that the positive developments to grow with the rapprochement of the country to EU, since this has been proved to be an engine of the FDI from the candidates countries.” stressed the Moody’s report. Referring to the assessment of Council of Europe, which includes: de-politicization of the public administration, strengthening of the justice system and endeavors to fight corruption and organized crime, the report stated that: “Our assessment has considered the Albania’s efforts to address the issue of rule of law and fighting corruption”. But, on the other side Moody has claimed that: “Theapproaching of general election (in June 2017) may serve to delay the reform efforts, if it were accompanied by an increase in political instability“. The slowdown in the reforms’ agenda is expected to create problems with the reduction of debt, and therefore can generate a devaluation of Albania in Moody’s ranking and those of other credit rating agencies.