Moody’s upgrades Jamaica, debt to B3

Moody's Investors Service said it upgraded Jamaica's government issuer, senior unsecured and provisional shelf ratings to B3 from Caa2 and changed the outlook to stable from positive.

The agency also upgraded the ratings of government-related entities Air Jamaica Ltd. and National Road Operating and Construction Co Ltd. to B3 from Caa2 and changed the outlook to stable from positive.

The long-term foreign currency bond ceiling was changed to Ba3 and the short-term foreign currency bond ceiling is unchanged at NP. The long-term foreign currency deposit ceiling was changed to Caa1, while the short-term foreign currency deposit ceiling remains at NP. The long-term local currency bond and deposit ceilings were changed to Ba2.

Moody’s said the upgrade was driven by the following factors:

• Significant and sustained fiscal consolidation and the government's strong commitment to continued reforms to reduce its high debt burden; and

• Significant improvement in the current account balance and in reserve levels, which has reduced external vulnerability.

© 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.