Seychelles maintains credit rating, which signals economic stability

Posted in International Organisations, Seychelles government, Seychelles' statistics at 10:20 am by Robert Klien

According to the Seychelles Finance, Trade and Blue Economy Minister, Jean Paul Adam, a credit rating of BB- for the 2nd straight year for the Seychelles’ government signals the jurisdiction’s economic stability and increased resilience amid global economic uncertainty.

Fitch Ratings gave Seychelles the same grade in 2015.

The finance minister said that the rating and the archipelago’s ‘stable outlook’ affirmed by Fitch is a show of confidence in Seychelles economy. He said: “Quite a number of countries including both highly developed countries and developing African countries have been downgraded due to global uncertainties, so for us this shows that we are on the right track”.

“Fitch Ratings has affirmed Seychelles’ Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BB-‘ with a Stable Outlook. The issue rating on Seychelles’ unsecured foreign-currency bond has also been affirmed at ‘BB-‘. The Short-Term Foreign- and Local-Currency IDRs have been affirmed at ‘B’ and the Country Ceiling at ‘BB’”.

In 2008, Seychelles had a total public debt that stood at 151% of GDP, with the external public debt representing almost 95% of GDP (USD 808 million). A default in debt payments prompted Seychelles to embark on a 5-year IMF-backed economic reform programme in October 2008, ending in October 2013. This has been followed by a new generation of reforms approved by the IMF in June 2014.

In its latest assessment, Fitch noted that the jurisdiction’s public debt remains on a downward path, while highlighting the fact that the government’s target to reduce the debt to GDP ratio to below 50% by 2018 has now been moved to 2020.

The authorities have also decided to reduce the country’s primary surplus to 3% of GDP for the years 2017 to 2020 compared to above 4% the past 2 years.

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