Rating agency Standard and Poor’s (S&P) has affirmed the Government of Jamaica’s ‘B+’ long-term foreign and local currency sovereign credit ratings and ‘B’ short-term foreign and local currency sovereign credit ratings and revised the outlook from “negative” to “stable”.

This move by one of the world’s leading rating agencies acknowledges Jamaica’s fiscal management which has a surplus in tax revenues, containment of expenditure, a supplementary budget with $33 billion earmarked for healthcare and social needs, plus an increase in tourism receipts.

S&P’s rating action reflects S&P’s view that Jamaica’s “economic recovery will strengthen, [and] government finances will return to fiscal surplus this year”.

S&P further noted that “Jamaica’s commitment to fiscal consolidation fosters macroeconomic stability….and supports the country’s creditworthiness”

The outlook revision to “Stable” is based on S&P’s analysis that the Government’s finances will continue to improve which will lead to the continued reduction of economic and financial risks caused by the pandemic, and the expectation that Jamaica’s debt will resume its pre-pandemic downward trajectory.

S&P opined that “the institutionalisation of fiscal consolidation policies bolsters policymaking stability and predictability” and “recent changes in the governance and mandate of the central bank have improved Jamaica’s monetary flexibility”.

Dr. Nigel Clarke, Minister of Finance and the Public Service, in commenting on the rating action said, “We welcome this poitive rating action by S&P, which again affirms our credit rating, while revising the outlook on Jamaica up to stable and is reflective of responsive yet disciplined policy choices and of institutional strengthening, even while in a pandemic. We remain committed to prudent policymaking while continuing to pursue reform with ambition.”