S&P cuts Fiji

S&P said it lowered Fiji’s long-term foreign- and local-currency sovereign credit ratings to B+ from BB- and revised the outlook to stable.

“The abrupt freeze in international travel since the onset of the Covid-19 pandemic in early 2020 has hit Fiji's tourism-dependent economy hard. We expect tax revenues to remain subdued this fiscal year, resulting in a relatively large fiscal deficit and growing government debt burden. GDP per capita has fallen significantly and we do not anticipate a recovery to pre-pandemic levels for several years,” the agency said in a press release.

The stable outlook reflects an expectation of an economic recovery in 2022, following a deep contraction over the previous two years, S&P said.

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