ST HELENA CONTINUES TO MAINTAIN ‘INVESTMENT GRADE’ CREDIT RATING
St Helena has once again achieved a Credit Rating of BBB-/A-3 stable, from global credit-rating agency Standard & Poors (S&P). The credit rating is ‘investment grade’ meaning that St Helena is a low risk destination to invest relative to other countries.
S&P regularly updates their credit ratings for all countries. Through subsequent research into risks and vulnerabilities to St Helena’s economy, they have preserved St Helena’s credit rating at BBB-/A-3 stable. This means there has been no change, and the Island continues to possess an ‘investment grade’ credit rating.
St Helena Government’s Chief Economist, Nicole Shamier, said:
“The stable outlook for this rating is largely thanks to the ongoing financial support provided by the UK, the Government’s balanced budget principles and absence of debt. Many countries have had their credit rating downgraded or have been given ‘negative outlook’ status during the pandemic; so we reflect that maintaining the rating and being granted ‘stable’ status is significantly positive.
“However, the report, by S&P forecasts that real GDP will contract 3% in 2021-2022, stemming from travel restrictions and limited flights to the Island, muted consumer demand, and fishing operation restrictions during the factory upgrade. S&P see potential for an economic growth rebound to 2-3% growth in 2022-2024, in part tied to the completion of the Equiano Cable.”
Gaining a Credit Rating is an action outlined in the Sustainable Economic Development Plan. The rating assists the recognition of the St Helena jurisdiction amongst the International Banking and Finance sector. It helps external investors understand more about the investment environment which includes political, financial, legislative and environmental factors. And finally, it provides an independent assessment of the state of play of St Helena’s economy compared to the rest of the world.
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SHG
14 October 2021
