PORT OF SPAIN, Trinidad, CMC -The Trinidad and Tobago government welcomed Wednesday the latest ratings from US-based Moody’s, which affirmed the country’s rating at Ba2 with a Stable outlook.
This affirmation is underpinned by the country’s return to sustained growth, primarily driven by the nonenergy sector.
“The rating agency recognizes the diversification efforts undertaken by our country, which are reflected in the growth of our non-energy sector as well as our constitutional system of checks and balances and improved data transparency track record,” said Finance Minister Colm Imbert, adding that “this also reflects our commitment to the implementation of structural fiscal and economic reforms.”
The Ministry of Finance said in a statement that despite lower-than-projected energy revenues in fiscal year 2024, which increased the fiscal deficit to 4.8 percent of gross domestic product (GDP) from 1.7 percent in fiscal year 2023, Moody’s recognizes the government’s fiscal revenue diversification efforts, as evidenced by the operationalization of Trinidad and Tobago Revenue Authority (TTRA) in 2025.
The rating agency also acknowledges that potential fiscal risks are mitigated by significant buffers. These include the Heritage and Stabilisation Fund (HSF) and cash reserves amounting to more than 40 percent of GDP in fiscal year 2024.
Moody’s indicated that the outlook on the current Ba2 rating remains stable despite the decline in Trinidad and Tobago’s foreign exchange reserves in early 2024 due to reduced energy receipts stemming from declining gas prices.
However, it said that “Shell T&T’s investment decision reduces uncertainty regarding Trinidad and Tobago’s future hydrocarbon production prospects and aligns with our baseline view about renewed expansion in natural gas production starting 2027.”
Imbert said that Trinidad and Tobago “is increasingly attracting oil and gas investment, and Moody’s recognizes this,” adding that new gas projects like the Osprey or the Cascadura fields will add production this year and support our growth prospects.
“The outlook for the medium term is auspicious,” Imbert said. The finance ministry said that international markets further recognize Trinidad and Tobago’s strengths.
In June 2024, the country issued a 10-year US$750 million bond at a desirable rate of 2.18 percent over US Treasury Notes.
“Today, yields on Trinidad and Tobago’s debt are lower than those of countries rated two or three notches higher by Moody’s, such as Panama (Baa3) and Colombia (Baa2),” the ministry said, adding that Trinidad and Tobago holds investment grade ratings of BBB- from S&P and AA from CariCRIS, reflecting the country’s strong economic fundamentals and prudent fiscal management.