Jan 2011 Financial News

BATT endorses Standard & Poor’s rating

Jan 19, 2011

The Banker’s Association of Trinidad and Tobago (BATT) yesterday issued a release in which it endorsed the decision by the international rating agency, Standard & Poor’s, to affirm T&T’s ‘A’ foreign currency and ‘A+’ local currency long-term sovereign credit ratings. BATT said the affirmation by S&P “serves as a strong indicator for external entities wishing to invest in the domestic economy via Foreign Direct Investment.” The association also said that “the rating speaks to one aspect of an investment decision—credit quality—which in some cases, may include, as one of many factors, what investors can expect to recover in the event of default.

It stated that other factors that should be analysed were the investment strategy and time horizon, risk tolerance and an estimation of a security’s relative value in comparison to other securities that one might choose. The affirmation of the A rating will also mean the continuation of lower borrowing costs for the Government of Trinidad and Tobago both internationally and locally. “Lower borrowing rates internationally should equate to relatively lower borrowing costs in the domestic financial system. “The ratings affirmation should also benefit the government, as well as its various state and statutory bodies, in ensuring that they continue to enjoy the best possible interest rate of their borrowing facilities,” according to the BATT statement.The ratings affirmation also helps in quantitatively adding to the business, economic and investor confidence in the local economy, BATT stated.


Source:
Trinidad Guardian
Wednesday January 19, 2011

http://guardian.co.tt/business/2011/01/19/batt-endorses-standard-poor-s-rating