Government take-over of Petrojam unlikely to affect ratings — analyst

BY HAROLD G BAILEY
Observer writer

Friday, February 22, 2019

Print this page Email A Friend!


THE Government's plans to acquire Venezuela's 49 per cent share in the Petrojam refinery is closely being monitored by international rating agency, Moodys Investment Services.

In an interview which preceded Tuesday's passing of legislation in the House of representatives allowing for the acquisition and ownership of the Petrojam shares, analyst David Rogovic said “we are waiting to see how this [the buyback of the share] is resolved”.

He was responding to queries from the Jamaica Observer about concerns that the move could be viewed negatively by some investors. Prime Minister Andrew Holness who piloted the Bill said the government has not been able to get Venezuela to honour a 12-year agreement to “upgrade the refinery”. The government first announced its intention to acquire the shares in January, noting that it was in Jamaica's economic security to do so.

In parliament on Tuesday the parliamentary opposition re-iterated its concern about the speed at which the government has gone about the issue and suggested an extension of the period to undertake the acquisition.

Rogovic meanwhile said that the government's move was not surprising since it had provided funds in the last budget for the purpose, and that the move is unlikely to have any significant negative effect.

Meanwhile, Rogovic said that Jamaica's credit rating is currently at B3 positive. He listed a number of positive economic fundamentals for the rating. Among them are a more stable inflation rate, fiscal consolidation, signs that growth is picking up, increased infrastructure spending and increased tourism revenue.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT