Sep 2019 Financial News

Jamaica Sovereign Credit Rating Raised To 'B+' From 'B' On Improved External Position; Outlook Is Stable

Sep 27, 2019

Overview

• Jamaica has made material progress in achieving macroeconomic stability and strengthening of its external position, improving its ability to withstand external shocks.
• As a result, we are raising our long-term foreign and local currency sovereign credit ratings on Jamaica to 'B+' from 'B' and affirming our short-term foreign and local currency sovereign credit ratings at 'B'.
• The stable outlook reflects our expectation that Jamaica will continue to bolster its fiscal resilience through continued public-sector reform, a declining debt burden, and will generate modest real GDP growth.

Rating Action

On September 27 2019, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'B+' from 'B'. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'B' short-term foreign and local currency sovereign credit ratings on the country. S&P Global Ratings also raised its transfer and convertibility assessment to 'BB-' from 'B+'.

Outlook

The stable outlook reflects our view that, in the next 12 months, Jamaica's fiscal policy will remain broadly consistent following the expiry of its IMF Stand-by Arrangement (SBA) in November 2019. We expect that the government will continue to deliver robust primary fiscal surpluses, leading to a gradual reduction in debt and interest burdens, and helping to boost external reserves. We also expect that the country will be able to maintain its growth momentum, with modest GDP growth, and that the government will continue advancing toward a more effective monetary policy framework for the central bank, including a more flexible exchange rate.


Source:
S&P Global Ratings
Monday 30th September, 2019