Fitch upgrades Jamaica

Fitch Ratings said it upgraded Jamaica's long-term foreign-currency issuer default rating to B+ from B, along with its local-currency issuer default rating to B+ from B.

Jamaica's country ceiling also was upgraded to BB- from B.

The upgrades reflect a track record of large primary surpluses that have cut general government debt-to-GDP significantly, Fitch said.

Jamaica has run one of the largest primary surpluses of any sovereign rated by Fitch at an estimated at 7% of GDP in fiscal year 2018, the agency explained.

The primary surplus has been above 7% since 2013, reducing general government debt-to-GDP to a projected 96.4% in 2018 from a peak of 135.3% in 2012, Fitch said.

The debt burden is on a downward path, but still compares unfavorably to the current B median of 60.7% of GDP, the agency said.

The government's interest burden has fallen, Fitch said, and recent large maturities have been financed through the domestic market.

The country's next sizable external bond maturity is due in 2022, the agency noted.

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