The Government of the Virgin Islands has received reaffirmed issuer ratings of CariAA- (Foreign and Local Currency) on the Caribbean Information and Credit Rating Services Limited (CariCRIS) regional scale, showcasing the territory’s continued commitment to sound fiscal management and economic stability.
The ratings, accompanied by a stable outlook, underscore the Virgin Islands’ resilience amidst global challenges, according to Premier and Minister of Finance, Dr. the Honourable Natalio Wheatley.
Premier Wheatley emphasized the territory’s robust economic fundamentals and governance practices as key drivers of its creditworthiness.
A press release from the Ministry of Finance outlined several factors that contributed to the Virgin Islands’ positive rating.
These included:
Continued Support from the UK: As a UK Overseas Territory, the Virgin Islands benefits from stability and support that bolster its creditworthiness.
Strong Economic Fundamentals: The territory boasts a high GDP per capita, propelled by a thriving tourism industry and financial services sector.
Dollarization: Pegging the local currency to the US dollar promotes economic stability and facilitates international trade.
Prudent Fiscal Policy: Guided by the Protocols for Effective Financial Management (PEFM) framework, the Virgin Islands maintains responsible fiscal practices, resulting in low public debt levels.
While the territory celebrates its current success, considerations for continued prosperity include:
Human Resource Development: Investing in human capital is essential for long-term economic growth.
Enhanced External Sector Monitoring: Strengthened monitoring of external factors informs strategic policy decisions.
Political Uncertainty: Addressing uncertainties surrounding the implementation of the Commission of Inquiry’s recommendations can bolster investor confidence.
Debt Management Strategy: Mitigating potential interest rate risks associated with variable-rate public debt ensures continued fiscal sustainability.
Premier Wheatley reaffirmed the government’s dedication to promoting sustainable economic development and a high quality of life for all residents of the territory.