The long-term issuer and senior unsecured ratings of Jamaica were raised from “B2” to “B1” by the rating agency Moody’s Investors Service, which also changed its outlook from “stable” to “positive.”
According to Moody, the decision to raise the rating was made in light of the fact that Jamaica, although experiencing different external shocks, remained unwavering in its commitment to a sustainable fiscal strategy based on the nation’s medium-term debt objective.
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The organization said that the government has effectively reversed the rise in debt levels brought on by the COVID-19 outbreak and implemented budgetary measures to support the debt metrics’ ongoing improvement.
The level of debt in Jamaica has already fallen significantly from pre-pandemic levels—it went from 110 percent in 2020 to 78 percent in 2022—and is predicted to keep going down.
The agency’s conclusion that a persistent positive fiscal trajectory resulting from measures implemented to strengthen fiscal, monetary, and economic policy efficacy would continue to support the nation’s credit resilience is reflected in the outlook’s adjustment to “positive.”
Dr. Nigel Clarke, the Minister of Finance, responded to the news by saying that the rating upgrade is yet another illustration of how well the Government’s economic policy framework has improved Jamaica’s economic independence and fostered an environment that encourages investment, supports jobs, and growth.
He noted, “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.”
