Jamaica’s Long-Term Foreign and Local Currency Issuer Default Ratings has now moved up to B+, indicating a positive outlook for the country and a reduced likelihood of going into debt default.

Fitch says the positive revision is linked to the country’s progressive debt reduction despite the pandemic shock, as well as economic stability linked to local institutional frameworks and favorable financing conditions.

Fitch says the new IMF facilities approved at the start of this month, with fairly low rates of repayment, have positively contributed to the rating.

The ratings agency says the country will have no need to issue external debt on the global financial markets given its prudent fiscal stance and low external maturities.

But despite the improved outlook, the agency says deep structural weaknesses, including a high crime rate, low productivity, and weak data on some population groups, have constrained the outlook.

By the end of this year, Fitch forecasts a further reduction in general government debt to GDP, reaching 80 percent and about 70 percent in 2026.

Inflation is also expected to continue declining while the country remains vulnerable to external shocks.

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Edited by Jesus Chan

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