KINGSTON, Jamaica – The upgrading of Jamaica’s credit rating by Moody’s is another testament to the effectiveness of the Government’s policy framework in improving the country’s economic independence and creating an attractive environment for investment that supports jobs and growth, says Minister of Finance and the Public Service, Dr Nigel Clarke.

Clarke, in a statement welcoming the upgrade said, “our economic policy framework has been principled, unwavering and disciplined, even in the face of monumental adversity in the form of the COVID-19 pandemic.”

“Today, the Jamaican economy is stronger as a result. We must do everything to preserve and maintain these gains,” he added.

On Wednesday, international credit rating agency, Moody’s Investors Service, announced the upgrading of the Government’s long-term issuer and senior unsecured ratings from ‘B2’ to ‘B1’ and revised its outlook for the economy from ‘stable’ to ‘positive’.

This follows improvements by Standard and Poor’s Global Ratings (S&P) in September and Fitch Ratings in March.

S&P upgraded the Government’s long-term foreign and local currency Issuer Default Rating (IDR) from ‘B+’ to ‘BB-’ with a ‘stable’ outlook.

Fitch affirmed the Government’s long-term foreign-currency IDR at ‘B+’ and maintained the outlook at ‘stable’.

READ: NCBJ touts S&P ratings upgrade as ‘validation of strong market position’

The improved credit rating provides the ability for Jamaica to get better terms on financing, which can result in substantial savings in the long run, leaving more room for spending on education, health, security and infrastructure.

It also makes Jamaica a more attractive place to do business, leading to more investments, more economic activity and more jobs for citizens.

A statement from the finance ministry said Moody’s decision reflects the agency’s analysis that the Government maintained a steadfast commitment to sustainable fiscal policy anchored on Jamaica’s medium term debt target, in the face of various external shocks.

The agency cited the government’s success in reversing Jamaica’s increased debt levels occasioned by the COVID-19 pandemic, and effecting fiscal policies that supported continued improvement in debt metrics.

– JIS