Standard and Poor’s upgrades Jamaica, outlook remains ‘positive’
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Standard and Poor’s (S&P) Global Ratings today upgraded Jamaica’s long-term foreign and local currency sovereign credit ratings from 'BB-' to BB,' while its outlook remains “positive”.
The rating reflects S&P’s assessment of Jamaica’s strengthening institutional and policy frameworks, supported by consensus across both political parties and various economic sectors on macroeconomic policies focused on debt reduction.
It is the agency’s expectation that the Government will remain committed to the legislated debt-to-GDP target of 60.0 percent or less by March 2028, following a track record of sustained primary surpluses, that has supported the steady reduction in debt.
S&P further noted that Jamaica stands out as the only country among 141 rated sovereigns to achieve an annual primary surplus above 3.0 percent of GDP for 10 consecutive years, despite experiencing major shocks such as the pandemic and climate-related events.
The positive outlook stems from S&P’s expectation that continued primary surpluses will allow the Government to meet the debt target in the fiscal responsibility law earlier than planned, with expected continued declines in the Government’s debt burden.
Finance Minister Fayval Williams has welcomed the news.
“The Standard & Poor’s credit rating upgrade to double B (“BB”) is a very positive development for Jamaica and puts us closer to hurdling the bar to an investment-grade rating. This rating action acknowledges the government’s unwavering commitment to fiscal discipline, while also focusing on making investments that will lead to higher GDP growth and thus provide a sustainable and improved quality of life for Jamaicans.”
Williams also said the continued positive outlook is a strong signal from S&P about Jamaica’s prospects.
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