Trinidad and Tobago Welcomes Moody’s Latest Ratings

Inclusive of Ba2 Rating with Stable Outlook

The Trinidad and Tobago government has welcomed the latest ratings from US-based Moody’s, which has affirmed the country’s rating at Ba2 with a Stable outlook.

This affirmation is underpinned by the country’s return to sustained growth, primarily driven by the non-energy sector.

Finance Minister Colm Imbert emphasized that the rating agency recognizes the diversification efforts undertaken by the country, which are reflected in the growth of the non-energy sector as well as the country’s constitutional system of checks and balances and improved data transparency track record. He added that this also reflects the country’s commitment to the implementation of structural fiscal and economic reforms.

The Ministry of Finance noted that despite lower-than-projected energy revenues in fiscal year 2024, which increased the fiscal deficit to 4.8 percent of gross domestic product (GDP) from 1.7 percent in fiscal year 2023, Moody’s recognizes the government’s fiscal revenue diversification efforts, as evidenced by the operationalization of the Trinidad and Tobago Revenue Authority (TTRA) in 2025.

Moody’s also acknowledges that potential fiscal risks are mitigated by significant buffers, including the Heritage and Stabilisation Fund (HSF) and cash reserves amounting to more than 40 percent of GDP in fiscal year 2024.

Moody’s indicated that the outlook on the current Ba2 rating remains stable despite the decline in Trinidad and Tobago’s foreign exchange reserves in early 2024 due to reduced energy receipts stemming from declining gas prices.

Oil and Gas Investment Boosts Growth Prospects

Imbert emphasized that Trinidad and Tobago is increasingly attracting oil and gas investment, and Moody’s recognizes this. He noted that new gas projects like the Osprey or the Cascadura fields will add production this year and support the country’s growth prospects.

Strong Economic Fundamentals and Prudent Fiscal Management

The finance ministry highlighted that international markets further recognize Trinidad and Tobago’s strengths, with yields on the country’s debt lower than those of countries rated two or three notches higher by Moody’s, such as Panama (Baa3) and Colombia (Baa2).

The country’s investment grade ratings of BBB- from S&P and AA from CariCRIS reflect its strong economic fundamentals and prudent fiscal management.

Conclusion

Trinidad and Tobago’s commitment to economic diversification, fiscal discipline, and prudent management has earned it a stable outlook from Moody’s, with the potential for growth prospects to improve in the medium term.

FAQs

* What is the current rating of Trinidad and Tobago from Moody’s?
The current rating is Ba2 with a Stable outlook.
* What are the factors driving the country’s growth?
The non-energy sector is primarily driving the country’s growth, with Moody’s recognizing the country’s efforts to diversify its economy.
* What are the significant buffers mitigating fiscal risks?
The Heritage and Stabilisation Fund (HSF) and cash reserves amounting to more than 40 percent of GDP in fiscal year 2024 are significant buffers mitigating fiscal risks.
* What is the outlook for the medium term?
The outlook for the medium term is auspicious, with new gas projects like the Osprey or the Cascadura fields expected to add production this year and support the country’s growth prospects.