ST HELENA’S INVESTMENT GRADE CREDIT RATING AFFIRMED
S&P Global Ratings has reaffirmed St Helena’s investment grade credit rating in a research update released on 31 March 2023.
The confirmation of St Helena’s credit rating is an endorsement of St Helena’s economic and financial management as the Island recovers from the effects of COVID-19. It also reflects the strong and continued support provided to St Helena by the United Kingdom.
S&P Global Ratings affirmed St Helena’s long term rating as ‘BBB-‘ and its short term rating as ‘A-3.’ The outlook remains stable. These ratings show that St Helena continues to be a safe and predictable environment to invest.
In arriving at its rating, S&P Global Ratings predicted that economic growth will average 2.4 per cent in the period 2024 to 2026; up from 1 per cent in 2023.
The assessment also highlighted the economic contribution of many of the key sectors identified in the Sustainable Economic Development Plan; including coffee production and tourism.
In relation to the Optical Fibre Cable project, S&P Global Ratings said as follows:
“We expect the island to benefit through higher speed connectivity, lower internet costs, and increasing use of internet-based technologies.”
The Minister for Treasury, Infrastructure & Sustainable Development, Mark Brooks welcomed the assessment, saying:
“Having St Helena’s credit rating reaffirmed again is a strong endorsement of the economic and financial management by the Government. It is also a reflection of the efforts of the whole community, which have been critical to ensuring the Island has recovered from COVID-19.”
“More work is needed, however, to make sure we lock St Helena into a higher growth economic path, and the Executive Council will continue to work to create the building blocks to economically sustain our community in the years ahead.”
S&P Global Ratings is an international credit rating agency. Its ratings assess the quality of debt instruments, such as bonds, from issuers such as national and sub‑national governments and corporations.
The ‘BBB-‘ rating issued to the St Helena Government means that the Government’s capacity to meet any financial commitments is considered adequate. It is an investment grade rating meaning that banking regulators and financial market participants would consider debt instruments issued by St Helena Government to be suitable investments for financial institutions.
Currently, the St Helena Government does not have any debt on issue.
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SHG
05 April 2023
