Moody’s Investors Services, one of the premier international rating agencies which rank the creditworthiness of borrowers, in particular sovereign governments, has affirmed the Ba2 rating of Trinidad and Tobago but moved Trinidad and Tobago’s outlook upwards from stable to positive, a statement by the Ministry of Finance said Monday.
It added that Minister of Finance Colm Imbert considers this affirmative action on the part of Moody’s to be a welcome development because it acknowledges the positive outcome of the efforts of the country throughout the several different shocks that have taken place over the recent years, such as oil and gas prices shocks and the severe adverse effects of the COVID-19 pandemic.
“Moody’s positive outlook for Trinidad and Tobago is based on the fiscal performance of the country, which goes beyond the windfall of last year as a result of the surge in oil and gas prices and flows from positive developments favourably affecting gas production capacity and economic diversification,” the ministry said.
It added, “The improvement in the country’s outlook is also an acknowledgement of policy effectiveness, illustrated by the capacity of the Government to implement difficult but necessary long-term reforms in restructuring transfers and subsidies and improving revenue collection.”
Moody’s observed that “The government’s adopted structural fiscal and economic reforms are reflected in improving institutions and governance strength assessment as a driver of this action.”