An international stamp of recognition acknowledging confidence in the growth of the Fijian economy was awarded by Standard and Poor that improved Fiji’s credit ratings.
Standard and Poor's (S&P), an international independent provider of credit ratings, has revised its methodology and assumptions for rating sovereign governments.
Consequently, Fiji's ratings have improved:
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· Foreign currency long term sovereign credit rating is raised to B from B-
· Foreign currency short-term rating is raised to B from C
· The outlook on the foreign currency rating is revised to B/stable from B /positive
Prime Minister Commodore Voreqe Bainimarama said the improved ratings is awarded to Fiji at a time when many countries are going through an economic crisis.
“With the current reforms put in place and those being planned by Government, we can expect Fiji's economic growth prospects to be enhanced, which will further improve the indicators required to raise Fiji's ratings in the future,” he said.
“This positive rating will instill further confidence in achieving Fiji's medium term macroeconomic policy goals as well as the key pillars of the Charter, which will lead Fiji to economic prosperity.
‘”The improved rating will also inspire investor confidence that Fiji is in a better position than some countries that are currently facing economic crisis.”
The Report by S&P also noted the continued improvements to Fiji's external position and the reduction in the current account deficit.
S&P highlighted the importance of the tourism sector which continues to recover and rebound.
This will further assist Fiji's external position to improve as the level of foreign reserves increases.
S&P’s positive rating awarded to Fiji comes at a time when the world largest economy, the USA lost unprecedented ratings from S&P.
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