Feb 2015 Financial News

Tobago closer to global credit rating

Feb 20, 2015

Tobago is one step closer to retaining its international global credit rating. This follows a meeting between team from the Finance and Enterprise Development Division of the Tobago House of Assembly (THA) led by Secretary Joel Jack and Moody’s Investor Services representatives Roxana Munoz and Adrian Javier Garza.

The meeting at the Victor E. Bruce Financial Complex was to complete the final phase of a ratings exercise. The discussions which started last year will conclude in the next few weeks with assignment of a credit rating for the island. 

“This rating will go a long way, boosting investor confidence and advancing the THA’s development plans for the island as set out in the Comprehensive Economic Development Plan (CEDP). It will provide the Assembly with greater access to the capital market where it can independently source funds for priority projects to sustain growth on the island,” Jack explained. 

“This has become even more critical given the situation with the energy sector. Decreasing oil prices and the continuous challenges with central government allocations will soon be appropriately addressed through the utilisation of alternate models for funding for Assembly projects including Public Private Partnerships other similar mechanisms.”

In order to secure the rating, which the Moody’s team has indicated will be positive, the THA has been subject to intense scrutiny of its financial operations including examination of its institutional framework, its sources of income, the performance of revenues of the THA, expenditure trends including the evolution of its recurrent expenditure, its contingencies account expenses, THA deposits, cash management and liquidity and debt financing and management. 

T&T now enjoys a Baa1 rating and the outlook for the THA’s rating may be on par. Interim reports indicate the island is on the high end of spectrum when compared to other rated Latin American regional governments whose scores span Baa1 and Caa3. The island’s balanced fiscal results (operating surplus), very low debt levels and solid liquidity position were noted in the report and should impact positively on the overall grade assigned. 

If given a Baa1 rating Tobago will be one of the highest ranked in the Caribbean scoring higher than Barbados, Jamaica and St Vincent, among others.

Source:
Trinidad Guardian
Friday February 20, 2015

http://www.guardian.co.tt/business/2015-02-20/tobago-closer-global-credit-rating