Global ratings agency Standard & Poor’s (S&P) has maintained its BBB+ rating with a stable outlook for the Turks and Caicos Islands (TCI) it announced Wednesday, 29th June 2016.
This is TCI’s third consecutive year with such a strong grading. A team from S&P made the annual visit to the islands in May and met with a range of officials as part of the review process.
“This rating represents continued recognition of TCI’s economic growth and stability due to sound fiscal policy and prudent financial management. However, as pointed out by S&P, growth is now restricted by short supply in available rooms as new construction is being frustrated by ongoing litigation”, said Minister of Finance, Washington Misick.
The S&P report reiterated that TCI’s relationship with the U.K. provides a benefit to local economic policies and judicial and institutional stability, all of which further support the ratings.
“TCI continues to see strong economic growth in its tourist-based economy, largely due to the ongoing economic recovery in its largest visitor market, the U.S. However, we expect that with existing hotels at capacity, tourist activity is likely to moderate in 2016, with real GDP growing about 3% in 2016, down from nearly 6% in 2015. Real GDP growth has been very strong in recent years and we expect it return to more sustainable levels in the medium term. We project that per capita GDP growth could average 1.3% annually in the next three-to-four years,” quoted from the S&P Global Rating Report.
The BBB+ rating is a strong factor in attracting foreign direct investment to TCI and building confidence amongst its existing business community.
Commenting on the announcement His Excellency, Governor Peter Beckingham welcomed the decision, stating; “This is great news for the TCI, and a welcome re-affirmation from a top rating agency that our economy is fundamentally sound and that we continue to strengthen our finances.”
He added; “This is to the credit of everyone involved, and more significant given the recent market turmoil. I am delighted we have kept this rating for three consecutive years.”
