Jersey’s credit rating has been reviewed by Standard & Poor’s (S&P) and while the long-and short-term sovereign credit ratings have been maintained at AA- the outlook has been revised from negative to stable; the outlook assessment being a reflection of their view of the potential direction of a long-term credit rating.
This review, part of the cyclical 6 monthly assessment process, reflects the UK rating revision from a negative outlook to stable following the result of their December 2019 election, which Standard and Poor’s believe will now afford the UK government more room to engage with the EU over their future relationship.
The Minister for Treasury and Resources, Deputy Susie Pinel, said: “This is a really positive outcome and reflects that Jersey has demonstrated it has very strong capacity to meet its financial commitments through the work the Government has undertaken to bolster reserves and prepare Jersey for a potential economic downturn. The Government does however, remain conscious of the potential risks to Jersey’s economy, pending the outcome of the UK’s future negotiations around Brexit and we will therefore continue to take a cautious approach in our financial planning.”
In their report, Standard and Poor’s specifically highlights Jersey’s fiscal buffers, noting that the sizeable fiscal buffers are an important rating strength, with the assets estimated at over 120% of GDP at the end of 2019.