The internationally acclaimed ratings agency Fitch has downgraded Jamaica’s economic outlook from a positive B+ to stable.
In April, Fitch had assigned a positive B+ rating but five months later this positive outlook has been downgraded to stable. The downgrade is due to what Fitch described as “the likely contraction in foreign currency income from tourism, remittances and alumina exports”.
The ratings agency notes that “local banks are liquid and can provide credit to the Government and external financing is available, with interest rates having dropped after spiking between March and April”.
However, Fitch stated that the Government debt-to-GDP remains above rating peers, and the Government has postponed the goal of reducing the ratio to 60 per cent (from 94 per cent at end-FY2019-2020) by two years to FY2027-2028.”
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