Oct 2023 Financial News

Moody's upgrades Jamaica's government ratings to B1 and changes outlook to positive from stable

Oct 18, 2023

Moody's Investors Service (Moody's) has today upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from(P)B2.The outlook has been changed to positive from stable.

The upgrade of Jamaica's rating to B1 reflects the government's sustained commitment to fiscal consolidation and
debt reduction, which Moody's expects to be effective in delivering further results.This commitment has been
demonstrated over the course of several shocks.Government debt is now below pre-pandemic levels and it will likely
continue to decline over the next several years. The reduction in government debt, along with progress on structural
reforms, has increased the economy's overall shock absorption capacity.

The positive outlook reflects Moody's assessment that a continuation of the favorable fiscal trajectory will further
increase Jamaica's credit resilience. Given the improvements in institutions and governance strength, additional
declines in Jamaica's debt and interest burdens would support a higher rating. A less contractionary fiscal stance
would also increase growth prospects for the economy.

In a related action, Moody's has also upgraded the backed senior unsecured debt ratings of government-related
entities Air Jamaica Limited and National Road Operating and Construct.Co Ltd to B1 from B2.These ratings are
based on an explicit debt guarantee provided by the government. These rating outlooks were also changed to positive
from stable.

Moody's has today also raised Jamaica's long-term local-currency ceilings to Baa3 from Ba1, as well as the long-term
foreign-currency ceiling to Ba2 from Ba3.The four-notch gap between the local-currency ceiling and the sovereign
rating reflects the strong rule of law and policy predictability as well as the lowl evel of government involvement in the
economy and low political risk.The two-notch gap between the foreign-currency ceiling and the local currency ceiling
incorporates the strong institutional capacity of the government against a moderately high external debt burden and
relatively closed capital account.

Moody's

New York, October 18, 2023