KINGSTON, Jamaica, CMC – The Jamaican Authorities has described as a “very optimistic improvement” for the island, the most recent rankings by the US-based Customary and Poor’s (S&P) that upgraded the nation’s long-term international and native foreign money sovereign credit score rankings from ‘BB-‘ to BB ’, whereas its outlook stays “optimistic”.
Finance Minister, Fayval Williams, in welcoming the score, stated that it “places us nearer to hurdling the bar to an investment-grade score.
“This score motion acknowledges the federal government’s unwavering dedication to fiscal self-discipline, whereas additionally specializing in making investments that may result in increased GDP (gross home product) development and thus present a sustainable and improved high quality of life for Jamaicans.”
Williams stated that the continued optimistic outlook is a robust sign from S&P about Jamaica’s prospects.
In its newest score, S&P stated that its rankings replicate its evaluation of Jamaica’s strengthening institutional and coverage frameworks, supported by consensus throughout each political events and varied financial sectors on macroeconomic insurance policies targeted on debt discount.
It said that it hopes the Andrew Holness authorities, which was re-elected to workplace within the September 3 common election, will stay dedicated to the legislated debt-to-GDP goal of 60 % or much less by March 2028, following a observe report of sustained main surpluses that has supported regular debt discount.
“Jamaica is the one one of many 141 sovereigns rated by S&P World Rankings that has achieved an annual main fiscal surplus above three % of GDP for the previous 10 years,” it stated, regardless of experiencing main shocks such because the pandemic and climate-related occasions.
The US score company said that this self-discipline is projected to drive internet authorities debt beneath 50 % of GDP this 12 months, outperforming official targets.
The evaluation additionally integrated latest massive financings, together with US$480 million in senior secured notes issued by Kingston Airport Income Finance LLC in October 2024 and US$400 million issued by Montego Bay Airport Income Finance Ltd in July 2025, saying these transactions “don’t weaken our authorities debt evaluation”.
It said that the optimistic outlook stems from S&P’s expectation that continued main surpluses will allow the Authorities to satisfy the debt goal outlined within the fiscal accountability legislation sooner than deliberate, with anticipated continued declines within the Authorities’s debt burden.
The transfer from BB- to BB signifies a decrease expectation that Jamaica will default on its money owed.
“The optimistic outlook displays an at the very least one-in-three probability we might elevate the score if the Authorities’s curiosity burden falls, and monetary efficiency stays robust,” S&P stated, noting that the improve is rooted in a “broad coverage consensus that has grow to be embedded in Jamaica’s political tradition”.
It stated that this cross-party help for fiscal accountability has enabled the nation to attain a singular distinction.
However regardless of these institutional features, the S&P report notes that “development stays constrained by excessive safety prices; perceived corruption; low productiveness; low enterprise competitiveness; and vulnerability to exterior shocks”.
S&P stated it expects the economic system to rebound to 2 per cent development in 2025 earlier than settling right into a long-term common of 1 to 2 per cent, a charge “beneath that of sovereigns in the identical GDP class”.
It said that this creates a transparent crossroads for policymakers: shift focus from austerity to growth with out undermining the hard-won fiscal credibility.
S&P stated that the optimistic outlook means an extra improve is inside attain, noting that it might elevate the score “if Jamaica’s debt burden improves as its interest-to-revenues ratio decreases”, however warning that it might additionally act if “the financial development charge improves and converges with that of friends”.
