Fitch Ratings Agency, today, March 5, 2024, upgraded Jamaica’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’, with the outlook remaining “Positive”.
The rating upgrade results from the Government’s continued commitment to a stable economic policy framework underpinned by the Bank of Jamaica’s inflation-targeting monetary policy as well as sound fiscal management anchored on debt reduction targets.
The Ratings Agency, through its press release, highlighted the Government’s commitment to delivering large primary surpluses, which has supported a significant reduction in Jamaica’s debt burden.
The Positive Outlook reflects the expectation of continued improvement in debt metrics and further deepening of the policy framework over the medium-term.
Fitch’s rating action is the third upgrade for Jamaica in FY2023/24, following positive actions by Standard and Poor’s Global Ratings on September 13, 2023 and Moody’s Ratings on October 18, 2023.
Dr. the Honourable Nigel Clarke, Minister of Finance and the Public Service, in commenting on the rating action said, “This credit rating applied by Fitch is the highest rating that the Government of Jamaica has secured from Fitch since Fitch started rating Jamaica’s debt eighteen (18) years ago. This is yet another testament to the effectiveness of the Government’s economic policymaking framework in improving Jamaica’s economic independence and fostering an economic climate that is conducive to growth and jobs. We must now ensure that we leverage these improvements to benefit all Jamaicans.”