KINGSTON, Jamaica, CMC – The Jamaican Government has described as a “very positive development” for the island, the latest ratings by the US-based Standard and Poor’s (S&P) that upgraded the country’s long-term foreign and local currency sovereign credit ratings from ‘BB-‘ to BB ’, while its outlook remains “positive”.
Finance Minister, Fayval Williams, in welcoming the rating, said that it “puts us closer to hurdling the bar to an investment-grade rating.
“This rating action acknowledges the government’s unwavering commitment to fiscal discipline, while also focusing on making investments that will lead to higher GDP (gross domestic product) growth and thus provide a sustainable and improved quality of life for Jamaicans.”
Williams said that the continued positive outlook is a strong signal from S&P about Jamaica’s prospects.
In its latest rating, S&P said that its ratings reflect its assessment of Jamaica’s strengthening institutional and policy frameworks, supported by consensus across both political parties and various economic sectors on macroeconomic policies focused on debt reduction.
It stated that it hopes the Andrew Holness government, which was re-elected to office in the September 3 general election, will remain committed to the legislated debt-to-GDP target of 60 percent or less by March 2028, following a track record of sustained primary surpluses that has supported steady debt reduction.
“Jamaica is the only one of the 141 sovereigns rated by S&P Global Ratings that has achieved an annual primary fiscal surplus above three percent of GDP for the past 10 years,” it said, despite experiencing major shocks such as the pandemic and climate-related events.
The US rating agency stated that this discipline is projected to drive net government debt below 50 percent of GDP this year, outperforming official targets.
The assessment also incorporated recent large financings, including US$480 million in senior secured notes issued by Kingston Airport Revenue Finance LLC in October 2024 and US$400 million issued by Montego Bay Airport Revenue Finance Ltd in July 2025, saying these transactions “do not weaken our government debt assessment”.
It stated that the positive outlook stems from S&P’s expectation that continued primary surpluses will enable the Government to meet the debt target outlined in the fiscal responsibility law earlier than planned, with expected continued declines in the Government’s debt burden.
The move from BB- to BB indicates a lower expectation that Jamaica will default on its debts.
“The positive outlook reflects an at least one-in-three chance we could raise the rating if the Government’s interest burden falls, and fiscal performance remains strong,” S&P said, noting that the upgrade is rooted in a “broad policy consensus that has become embedded in Jamaica’s political culture”.
It said that this cross-party support for fiscal responsibility has enabled the country to achieve a unique distinction.
But despite these institutional gains, the S&P report notes that “growth remains constrained by high security costs; perceived corruption; low productivity; low business competitiveness; and vulnerability to external shocks”.
S&P said it expects the economy to rebound to two per cent growth in 2025 before settling into a long-term average of one to two per cent, a rate “below that of sovereigns in the same GDP category”.
It stated that this creates a clear crossroads for policymakers: how to shift focus from austerity to expansion without undermining the hard-won fiscal credibility.
S&P said that the positive outlook means a further upgrade is within reach, noting that it could raise the rating “if Jamaica’s debt burden improves as its interest-to-revenues ratio decreases”, but warning that it could also act if “the economic growth rate improves and converges with that of peers”.
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