PORT OF SPAIN, Trinidad, CMC -The Trinidad and Tobago authorities welcomed Wednesday the most recent rankings from US-based Moody’s, which affirmed the nation’s score at Ba2 with a Secure outlook.
This affirmation is underpinned by the nation’s return to sustained development, primarily pushed by the nonenergy sector.
“The score company acknowledges the diversification efforts undertaken by our nation, that are mirrored within the development of our non-energy sector in addition to our constitutional system of checks and balances and improved knowledge transparency observe document,” stated Finance Minister Colm Imbert, including that “this additionally displays our dedication to the implementation of structural fiscal and financial reforms.”
The Ministry of Finance stated in an announcement that regardless of lower-than-projected power revenues in fiscal 12 months 2024, which elevated the fiscal deficit to 4.8 p.c of gross home product (GDP) from 1.7 p.c in fiscal 12 months 2023, Moody’s acknowledges the federal government’s fiscal income diversification efforts, as evidenced by the operationalization of Trinidad and Tobago Income Authority (TTRA) in 2025.
The score company additionally acknowledges that potential fiscal dangers are mitigated by vital buffers. These embrace the Heritage and Stabilisation Fund (HSF) and money reserves amounting to greater than 40 p.c of GDP in fiscal 12 months 2024.
Moody’s indicated that the outlook on the present Ba2 score stays secure regardless of the decline in Trinidad and Tobago’s international change reserves in early 2024 resulting from decreased power receipts stemming from declining gasoline costs.
Nevertheless, it stated that “Shell T&T’s funding determination reduces uncertainty concerning Trinidad and Tobago’s future hydrocarbon manufacturing prospects and aligns with our baseline view about renewed growth in pure gasoline manufacturing beginning 2027.”
Imbert stated that Trinidad and Tobago “is more and more attracting oil and gasoline funding, and Moody’s acknowledges this,” including that new gasoline initiatives just like the Osprey or the Cascadura fields will add manufacturing this 12 months and help our development prospects.
“The outlook for the medium time period is auspicious,” Imbert stated. The finance ministry stated that worldwide markets additional acknowledge Trinidad and Tobago’s strengths.
In June 2024, the nation issued a 10-year US$750 million bond at a fascinating price of two.18 p.c over US Treasury Notes.
“As we speak, yields on Trinidad and Tobago’s debt are decrease than these of nations rated two or three notches greater by Moody’s, reminiscent of Panama (Baa3) and Colombia (Baa2),” the ministry stated, including that Trinidad and Tobago holds funding grade rankings of BBB- from S&P and AA from CariCRIS, reflecting the nation’s robust financial fundamentals and prudent fiscal administration.
