A report carried by Reuters News Agency, has noted that Fitch Ratings, one of three “Big Three credit rating agencies” has downgraded the UK Government Guaranteed USD170m to the Turks and Caicos Islands.’
The report released Monday 22nd April, said (Standard & Poor’s, Moody’s Investor Service, and Fitch Ratings) Nationally Recognized Statistical Rating Organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975), released the following statement today 22nd April 2013, regarding the Turks and Caicos Islands:
“Fitch Ratings has downgraded the UK Government Guaranteed Turks and Caicos Islands’ USD170m 3.20% notes due 2016 to ‘AA+’ from ‘AAA’.
KEY RATING DRIVERS:- The rating is based on the full, unconditional, and irrevocable guarantee provided by the Secretary of State for International Development, for and on behalf of the Government of the UK (‘AA+’/Stable), in accordance with the terms and conditions of the guarantee as specified in the guarantee documentation.
The rating is sensitive to any further changes in the UK sovereign rating.”
Local businessman Albray Butterfield weighing in on this report, warns his friends and fellow Business Associates, that this is not a good thing or a good sign for the Turks and Caicos Islands.
“What this means is that the international financial confidence in the United Kingdom, and the Turks and Caicos Islands Governments to not default has weakened, based on our current socio-economic condition and our future economic outlook over the next three years,” said Mr. Butterfield.
“The Turks and Caicos Islands Government has to diversify our economy, and do it fast. The last six years has proven that the tourism and financial industry is not sustainable, therefore, we can no longer hitch our economic future to two industries alone,” suggested Butterfield.
