Fitch affirms Jamaica’s ‘BB-’ rating, outlook remains ‘stable’
KINGSTON, Jamaica — Fitch Ratings Agency on Thursday affirmed Jamaica’s long-term foreign-currency and local currency issuer default rating at BB- with the outlook remaining stable, the Ministry of Finance has revealed.
In explaining the ratings action, Fitch pointed out the Government’s continued commitment to maintaining macroeconomic stability while managing one of the most severe natural disasters to affect Jamaica in recent history.
Hurricane Melissa, which struck the island on October 28, 2025, caused widespread destruction, particularly across the western region, with estimated damage reaching US$8.8 billion or 40.0 per cent of gross domestic product (GDP).
The ministry said Fitch projects a temporary economic contraction of 1.5 per cent in 2025 and 2.6 per cent in 2026, as Jamaica advances reconstruction efforts. Despite these challenges, the rating agency highlighted Jamaica’s robust financial preparedness, underscored by a multi-layered risk‑management framework that includes concessional multilateral loan packages exceeding US$6.0 billion; government insurance and contingency funds totalling nearly US$250.0 million; additional lines of credit; a catastrophe bond facility of US$150.0 million; and substantial expected private insurance inflows.
The agency also noted Jamaica’s responsible fiscal response, including the temporary suspension of the Fiscal Responsibility Law to accommodate urgent reconstruction costs. Fiscal balances are forecast to swing into deficit in FY2025 and FY2026; however, primary surpluses are expected to resume in FY2027, aligning with the Government’s target to reduce debt‑to‑GDP levels toward 60.0 per cent.
Finance Minister, Fayval Williams, welcomed the rating stating that Fitch’s highlighting of the fact that “Jamaica’s Government has a strong decade-plus track record of adhering to a solid fiscal framework, which has resulted in a sharp reduction in debt/GDP” speaks volumes for the work of the Government, its steadfastness to fiscal discipline and the many sacrifices of the people of Jamaica.
