Moody’s upgrades Jamaica

Moody's Investors Service said it upgraded 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 agency said in a press release.

The improved outlook reflects an assessment that a continuing favorable fiscal trajectory will improve 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,” Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.