Beautiful Virgin Islands

Thursday, May 19, 2022

Premier boasts about favourable economic rating from regional body

Premier boasts about favourable economic rating from regional body

Premier Andrew Fahie has claimed that his government received a double ‘A minus’ rating from the Caribbean Information and Credit Rating Services Limited (CariCRIS).
Speaking at a special press announcement yesterday, Fahie said the government has worked hard to manage the economy during COVID-19 and he has independent proof of the standards of the government’s performance.

“CariCRIS has publicly affirmed its issuance of CariAA- (Cari Double A Minus) rating on foreign and local currency on its regional scale for the government. Thanks be to God, the Virgin Islands has received an AA- from CariCRIS. One of the highest ratings that any country can achieve,” Fahie said.

According to the CariCRIS scale, the CariAA rating is the second-highest rating and means the country that receives this rating is considered to have very low credit risk with respect to the timely service of debt obligations.

The rating system also explained that the rating outlook can be ‘positive’, ‘stable’ or ‘negative’. Once a positive or negative outlook is attached to the rating, it does not necessarily indicate a rating change but there is a one in three chance that there can either be an upgrade or downgrade of the ratings assigned.

Fahie also that noted the Virgin Islands’ level of creditworthiness was rated higher than many other countries in the Caribbean.

“One of the factors that contribute to this rating, according to the CariCRIS, is the Virgin Islands’ prudent fiscal policy and the maintenance of low debt. CariCRIS also noted that while COVID-19 setback our economy’s recovery in the aftermath of the 2017 hurricanes, your government’s implementation of the various initiatives to protect income and stimulate economic activity help to expand GDP by an estimated 2.3 per cent in 2021 from the projected contraction of 9.5 per cent in 2020,” the Premier said.

The Virgin Islands financial sector posted an improvement in 2021 as incorporation figure was back up to pre-pandemic levels. In 2022, real GDP expansion is forecasted, as tourism picked up and financial services activities stabilise, notwithstanding uncertainties brought on by the COVID-19 pandemic,” said Fahie, who is also the Minister of Finance.

He noted that these are the words of CariCRIS, an independent, well recognised and credible organization worldwide.

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