Trinidad and Tobago’s Credit Rating Affirmed by Standard and Poor

Credit Rating Agency Affirms Trinidad and Tobago’s Credit Rating

International credit rating agency Standard and Poor (S&P) has affirmed Trinidad and Tobago’s credit rating at BBB, an Investment Grade Rating reflective of the country’s credit strength.

Finance Minister Discloses Affirmation

Finance Minister Colm Imbert disclosed this, saying S&P has maintained its stable outlook for the twin-island republic.

Credit Strength Supported by External Assets and Institutions

In a statement, Imbert said the country’s external solid assets and stable institutions “support our Investment-Grade Rating.”

S&P’s Outlook

S&P points out that “the government’s large liquid financial assets mitigate the effect of economic cycles on the country’s public finances. S&P estimates these assets will represent about 47% of GDP during the outlook horizon.”

Hydrocarbon Production and Revenue

Consistent with the recently published views of the Minister of Finance, S&P anticipates some decline in hydrocarbon production in the near term, leading to a temporary decrease in revenue. However, significant improvement will occur in both the availability of natural gas and revenue as major new gas fields come on stream, in line with government projections.

Government’s Prudent Handling of Economy

“It is clear that the presentations made by the Minister of Finance and his technocrats at the Ministry of Finance to S&P during its annual credit rating visit earlier this year had sufficient credibility for S&P to maintain its investment grade rating for Trinidad and Tobago,” Imbert noted.

Minister’s Commendation

The Minister of Finance also commended S&P for its balanced and measured view of “our country and its validation of the Government’s prudent handling of the economy and sound management of our fiscal accounts.”

Conclusion

In conclusion, Trinidad and Tobago’s credit rating has been affirmed by Standard and Poor, reflecting the country’s credit strength and stability.

FAQs

Q: What is the credit rating of Trinidad and Tobago?
A: The credit rating of Trinidad and Tobago is BBB, an Investment Grade Rating.

Q: Why was the credit rating affirmed?
A: The credit rating was affirmed due to the country’s external solid assets and stable institutions, as well as the government’s large liquid financial assets.

Q: What is the outlook for hydrocarbon production and revenue?
A: S&P anticipates a temporary decrease in revenue due to declining hydrocarbon production, but significant improvement is expected in the future as new gas fields come on stream.

Q: What did the Minister of Finance commend S&P for?
A: The Minister of Finance commended S&P for its balanced and measured view of the country and its validation of the Government’s prudent handling of the economy and sound management of fiscal accounts.