KINGSTON, Jamaica, CMC – Standard and Poor’s (S&P) Global Ratings has upgraded Jamaica’s Long-Term Foreign and Local Currency Issuer Default Rating from ‘B+’ to ‘BB-‘ with a stable outlook.
The S&P rating reflects the agency’s projections that Jamaica’s debt-to-GDP will continue to decline, led by modest fiscal surpluses over the medium term.
The agency says while the government’s interest burden remains high, it expects this to fall to 17.5 percent of government revenues within the next fiscal year and to less than 15 percent by 2026.
S&P also foresees continued economic growth, expected to support external balances over the next four years.
At the end of the 2022/2023 fiscal year, the debt-to-output ratio was 77.1 percent, reflecting a lower outturn versus the projected proportion of 79.7 percent.
S&P says modest fiscal surpluses over the medium-term led to this.
In reacting to the development, Finance Minister Dr. Nigel Clarke said this is the best credit rating Jamaica has received from the S&P since it started rating its sovereign debt in 1999.
“The benefit of this credit upgrade to Jamaica is that it provides the ability for Jamaica to get better terms on financing, which can save a substantial amount of money in the long run, leaving more room for spending on education, health, security, and infrastructure. It also makes Jamaica a more attractive place to invest. He said that this will lead to more investments, economic activity, and more jobs for Jamaicans,” he said.
He said the historic upgrade proves that the government’s policy priority of economic recovery is paying dividends, especially following the devastating impact of the COVID-19 pandemic.
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