VI economy gets top credit rating from regional entity
The Caribbean Information and Credit Rating Services Limited (CariCRIS) has publicly affirmed its issuer ratings of CariAA- (Foreign and Local Currency) on its regional rating scale for the Government of the Virgin Islands.
This is independent proof of how the VI Government has managed the economy.
High level of creditworthiness for VI
According to Premier and Minister of Finance Hon Andrew A. Fahie (R1), a Double-A-Minus rating from CariCRIS is one of the highest ratings that any country can achieve.
“CariCRIS has rated the Virgin Islands’ level of creditworthiness as high compared to other countries the Caribbean, and projected a stable outlook. One of the factors that contributed to this rating, according to CariCRIS is the Virgin Islands’ prudent fiscal policy and the maintenance of low debt,” Premier Fahie explained in a statement on April 14, 2022.
He said CariCRIS also noted that while COVID-19 set back the VI’s economic recovery in the aftermath of the 2017 hurricanes, its Government’s implementation of a number of initiatives to protect incomes and stimulate economic activity helped to expand GDP by an estimated 2.3% in 2021 from the projected contraction of 9.5% in 2020.
According to the Finance Minister, the Virgin Islands’ financial services sector posted an improvement for 2021 as incorporation figures were back up to pre-pandemic levels.
Real GDP expansion forecasted for 2022
“In 2022, real GDP expansion is forecasted as tourism picks up and financial services activities stabilise notwithstanding lingering uncertainty brought on by the COVID-19 pandemic.
“These are the words of CariCRIS, an independent, well recognised and credible organisation worldwide.”
Premier Fahie said it is well known that pandemic restrictions in almost every jurisdiction in the world affected air travel and tourism but, as a result of the easing of restrictions globally and the world adjusting to a new normal, CariCRIS forecasts that Virgin Islands tourism is expected to rebound in 2022, though globally and locally it will take some time to reach pre-pandemic levels.
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17 Responses to “VI economy gets top credit rating from regional entity”
"But we should avoid the temptation to see any credit rating agency as a foolproof way to avoid default or for picking winners. If we had any doubt of this, the failure of credit rating agencies to prevent or warn of the impending failure of ENRON or WorldCom becomes difficult to explain. If there is any lesson from these incidents, it is that credit ratings are as useful as the quality of the information provided and the integrity of the accounting, auditing and regulatory standards applicable"