Moody’s upgrades Jamaica

Ratings agency Moody’s Investors Service yesterday upgraded Jamaica’s long-term issuer and senior unsecured ratings from ‘B2’ to ‘B1’ and revised its outlook from stable to positive.

Moody’s said the decision to upgrade the rating reflected its analysis that Jamaica, faced with various external shocks, maintained a steadfast commitment to sustainable fiscal policy anchored on the country’s medium-term debt target.

The agency stated that the Government successfully reversed the increase in debt levels caused by the COVID-19 pandemic and effected fiscal policies that supported the continued improvement in debt metrics.

Jamaica’s debt level is now well below pre-pandemic levels, declining more than 30.0 percentage points to 78 per cent in 2022 from the 110 per cent recorded in 2020 and is expected to continue that downward trajectory.

The outlook’s revision to ‘positive’ reflects the agency’s assessment that a sustained positive fiscal trajectory stemming from reforms undertaken to improve fiscal, monetary, and economic policy effectiveness will continue to bolster the country’s credit resilience.

Reacting to the news, Minister of Finance and the Public Service Dr Nigel Clarke said the rating upgrade is yet another testament to the effectiveness of the Government’s economic policy framework in improving Jamaica’s economic independence and creating an environment that is attractive to investment and that supports jobs and growth.

“Our economic policy framework has been principled, unwavering, and disciplined, even in the face of monumental adversity in the form of the COVID-19 pandemic. Today, the Jamaican economy is stronger as a result. We must do everything to preserve and maintain these gains.”