Fitch Upgrades Jamaica’s Credit Rating

The international credit ratings agency, Fitch,  today revised the outlook for Jamaica from “Stable” to “Positive” and re-affirmed the country’s long term foreign currency and local currency Issuer Default Ratings at ‘B-’.

It also re-afirmed the country’s short-term foreign currency rating at ‘B’ and a Country Ceiling of ‘B’.

The positive outlook is based on the reduction in external financing risks as reflected in the increase in the country’s Net International Reserves.

It’s also based on increases in services, remittances and capital inflows, and a decline in the current account deficit which has contributed to lower external financial needs.

Fitch says the ratings were also supported by the country’s structural strengths, such as its relatively high income per capita and social indicators, policy consensus and relatively strong institutional capacity.

The agency said the Government’s commitment to fiscal consolidation and macro-economic stability and the continued successful performance under the IMF programme are key assumptions underpinning the upgrade.