Caribbean News Now!

About Us Contact Us

Countries/Territories

Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.

Contribute

Submit news and opinion for publication

Subscribe

Click here to receive our daily regional news headlines by email.

Archives

Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...

Travel


Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin



News from the Caribbean:


Back To Today's News

Trinidad and Tobago's sovereign credit rating reaffirmed
Published on April 23, 2014 Email To Friend    Print Version

PORT OF SPAIN, Trinidad -- On Sunday, finance and economy minister, Larry Howai, confirmed that Moody's Investors Services has reaffirmed Trinidad and Tobago’s Baa1 (medium grade/moderate credit risk) sovereign credit rating based on relatively high income levels, driven by the country’s large and diversified energy sector.

larry_howai2.jpg
Minister of Finance and the Economy, Senator Larry Howai
The minister noted that Moody's also based their evaluation on the expansion of the economy which, the analysts identified, was mainly due to the performance of the non-energy sector, given the significant maintenance work that had to be done in the energy sector over the past year. This expansion has been driven to a large extent by an aggressive fiscal stimulus program which was complemented by an accommodative monetary policy stance.

The Moodys’ report stated that the economy is expected to maintain a positive momentum into 2014 and forecasted growth of 2.9% in 2014, “further picking up to 3.2% in 2015, driven by increased exploration activity and foreign investment in the energy sector, as well as, public infrastructure projects.”

Moody's noted too, that “The sovereign credit profile also benefits from a moderate and affordable debt burden and a very strong external position anchored by a sizable foreign exchange reserves buffer.” the report stated.

Moodys’ further classified government’s strength as being “Very High” due to its relatively moderate debt burden and comparatively high debt affordability.

The government’s balance sheet, which includes the country’s Heritage and Stabilization Fund, “a core financial institution to manage oil sector revenues”, which has accumulated a balance in excess of 20% of gross domestic product, was cited as one of the factors that contributed to the reaffirmation of the positive credit rating.

Howai noted that the rating confirmation underlined the success of the continuing efforts of the government to improve the quality of life for citizens, transform the economy, create new jobs and provide improved services without deteriorating the country's fiscal metrics.

Regarding the downside risks identified by Moody's, the minister stated, “I am fully cognizant of the issues raised by Moody's on the fact that the economy remains highly dependent on the energy sector and the existence of infrastructure deficiencies as well as competitiveness challenges.”

He added, “We have commenced the process of bringing the fiscal accounts into balance and will close that gap further this year. In addition, we continue to focus on the deficiencies in our physical infrastructure as well as on the creation of a well diversified knowledge based economy. As such we continue our programme of physical upgrade of the nation's infrastructure and are in aggressive pursuit of a portfolio of structural reforms that preserve fiscal sustainability, promote business competitiveness, and provide appropriately supportive regulatory environments.”

“Regarding the latter, government has prioritized a number of structural reforms to foster economic growth and promote economic diversification and business competitiveness. Government’s structural reform agenda has revolved around pension reform, doing business reform, public debt and cash management, investment promotion and the development of special economic zones, institutionalizing public private partnerships and a national broadband strategy.”

Moody’s assessment of the performance of the Trinidad and Tobago economy was conducted at the beginning of April 2014.
 
Reads: 1926





Click here to receive daily news headlines from Caribbean News Now!



Back...

Comments:

No comments on this topic yet. Be the first one to submit a comment.

Back...

Send us your comments!  

Send us your comments on this article. All fields are required.

For your contribution to reach us, you must (a) provide a valid e-mail address and (b) click on the validation link that will be sent to the e-mail address you provide.  If the address is not valid or you don't click on the validation link, we will never see it!

Your Name:

Your Email:

(Validation required)

Comments:
Enter Code





Disclaimer
User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.



Other Headlines:



Regional Sports: