Financial blogger Gillian Jackson says Jamaica’s upgraded international credit rating opens tremendous opportunities for the country and local businesses.

International credit rating agency S&P Global Ratings recently upgraded Jamaica’s credit rating from B+ to BB-. This is the best rating we’ve ever gotten from the agency since they started rating Jamaica’s debt in 1999.
Speaking on Taking Stock with Kalilah Reynolds, Jackson noted that the improved score reflects the agency’s confidence in the Government’s monetary policies and the country’s ability to repay its loans.
She noted that the upgraded rating will allow the Government to get better terms on financing, which will lead to long-term savings for the country.

“Our health care can improve, and our infrastructures will improve as well. There’s so many opportunities for the country to grow if we continue on this track on this path,” she said.

However, she stressed that while the upgraded rating can secure better terms for loans, it also opens the country up to direct investments.

“Jamaica is now in a position to attract what’s called foreign direct investment,” she explained.

Foreign Direct Investment refers to overseas investors taking a stake in a local company or programme.

“That can help us to stimulate the economic growth and help us to improve on things like healthcare and education,” Jackson said.

“We’d have increased capital to spend on expansion of businesses etc when we have better credit rating internationally. Like the highway that just opened up… we could probably have five highways in a year,” she added.

S&P also labelled Jamaica’s economic outlook as stable. Basically, the agency believes all the factors that contributed to the improved credit rating will continue.
S&P Global did point out that the Government still spends a lot to repay interest from loans. But they said this should fall to 17.5% of revenues within the next fiscal year, and less than 15% by 2026.