Home  News Regional News Jamaica keeps Standard & Poor’s ‘B’ rating
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Jamaica keeps Standard & Poor’s ‘B’ rating |
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Sunday, 26 October 2008 |
Standard & Poor's on Tuesday confirmed Jamaica’s ‘B’ rating on its credit standings, but moved the island’s economic outlook from a stable to negative.
The rating agency in its assessment, said external pressures, arguably the current economic climate in the United States and across the world, are likely to affect Jamaica negatively. These pressures, the report said might reduce growth and increase the nation’s already high loans – factors which it said might further weaken the struggling Jamaican dollar.
Olga Kalinina S&P analyst said in a release, "Our ratings on Jamaica are supported by the government's high primary fiscal surpluses; timely policy response to rising pressures in the foreign exchange market; important local capital markets; and support from the trade unions and the business sector.”
S&P cited the rapid devaluation of the currency which has declined in value about three percent over the last four weeks or so. The agency also raised the issue of the devaluation of the Jamaican currency which has lost almost 3-percent in value over the last 30-days even with a $US300-million boost from the Central Bank.
However, Finance Minister Audley Shaw is looking at the positive side of the rating, asserting that the falling oil prices and increased productivity from domestic agriculture would offset concerns about the depreciating current account.
According to Shaw, Jamaica’s fiscal performance up to the end of last month stayed on target, despite some decline in revenue due partly to Tropical Storm Gustav.
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