KINGSTON, Jamaica – Fitch Ratings Agency today upgraded Jamaica’s Long-term foreign and local currency issue ratings to ‘B’ from ‘B-‘ and revised the outlook to Stable from Positive. The issue ratings on Jamaica’s senior unsecured Foreign- and Local-Currency bonds were also upgraded to ‘B’.

The ratings upgrade is predicated on a number of factors including the Government’s continued commitment to fiscal consolidation and macroeconomic stability.

The Government’s adherence to the fiscal primary surplus targets agreed under the International Monetary Fund programme and the successful conclusion of ten quarterly reviews by the Fund along with the continued improvement in external finances, buoyed by lower oil prices, have augered well three year’s into the country’s Economic Reform Programme.

Minister of Finance and Planning Dr Peter Phillips said that the ratings upgrade is “very welcome news, representing further evidence of the Government’s management of the economy and is a solid vote of confidence from the international financial community in Jamaica’s Economic Reform Programme.”

In its release, Fitch also stated that there are signs of recovery with real GDP growing 1.5 per cent year on year in the third quarter of calendar year 2015 with expectations that this will continue given major investments such as the north-south highway, the opening of new and refurbished capacity in the tourism industry as well as expected investments in the port and special economic zones.

The rating agency also noted that structural indicators, such as governance, human development and per capita income, are better than the ‘B’ median with the business environment indicators also improving.