- ECNETNews reports that Trinidad and Tobago’s credit rating has been reaffirmed at BBB- by the international credit rating agency, Standard and Poor’s (S&P), indicating the country’s investment-grade standing and credit strength. The agency has also maintained a stable outlook for the nation.
- The robust external assets and stable institutional framework of Trinidad and Tobago underpin its investment-grade rating.
- S&P notes that “the government’s large liquid financial assets mitigate the impact of economic cycles on the country’s public finances. These assets are projected to account for approximately 47 percent of GDP throughout the outlook period.”
PORT-OF-SPAIN, Trinidad – The Minister of Finance has stated that Standard and Poor’s has reaffirmed Trinidad and Tobago’s credit rating at BBB-, a reflection of the nation’s credit strength. The agency continues to uphold a stable outlook for Trinidad and Tobago.
The country’s strong external assets and robust governance frameworks have been key factors supporting this investment-grade rating. According to S&P, “the government’s extensive liquid financial assets help cushion the fluctuations in economic cycles affecting public finances. These assets are estimated to represent around 47 percent of GDP during the outlook period,” as highlighted in a recent ministry press release.
Aligning with the minister’s recent projections, S&P expects a slight decline in hydrocarbon production in the short term, which may temporarily reduce revenue. However, significant improvements in revenue are anticipated as new major gas fields become operational, consistent with government forecasts.
“The presentations made by the Minister of Finance and his team during S&P’s annual rating visit earlier this year proved credible, allowing S&P to uphold its investment-grade rating for Trinidad and Tobago,” the press release highlighted.
“The Minister of Finance praised S&P for its balanced assessment of our economy and acknowledged the government’s prudent fiscal management. Over the past nine years, Trinidad and Tobago has demonstrated fiscal discipline, establishing stable public institutions and significant financial reserves, making our country an attractive destination for investors amid challenging conditions,” the government stated.
“To illustrate international confidence, the government successfully launched two heavily oversubscribed international bonds within the last year—US$550 million in September 2023 and US$750 million in June 2024—achieving sovereign spreads over US Treasuries that rank among the lowest in the Latin America and Caribbean region (170 bps and 204 bps respectively).”
As reiterated by the Minister of Finance:
“The government is committed to making responsible financial decisions to strengthen Trinidad and Tobago for a better future, as we navigate through challenging financial landscapes.”
