8 April 2020
- St Helena’s credit rating still at BBB-/A-3 stable
- Island continues to possess ‘investment grade’ credit rating
In December 2019, St Helena achieved a Credit Rating of BBB-/A-3 stable, from global credit-rating agency Standard & Poors (S&P). This credit rating is ‘investment grade’ meaning that St Helena is a low risk place to invest relative to other countries.
S&P regularly updates their credit ratings for all countries. Through subsequent research into risks and vulnerabilities to St Helena’s economy, particularly considering COVID-19, they have preserved St Helena’s credit rating at BBB-/A-3 stable. This means there has been no change, and the Island continues to possess an ‘investment grade’ credit rating.
St Helena Government’s Chief Economist, Nicole Shamier, said:
“The stable outlook is largely thanks to the preventive measures we have put in place to protect the Island from COVID-19 thus far as well as the ongoing support by the UK Government to help us manage the risks and consequences should an outbreak occur on the Island. It is noted that although COVID-19 being prevalent in South Africa and UK and the downturn that both these countries will be experiencing is likely to affect St Helena’s economic prospects this year, there is potential for good bounce back in 2021-2022 thanks to the completion of several important infrastructure projects including the landing of the subsea cable. Many countries have had their credit rating downgraded or have been given ‘negative outlook’ status; so we should not underestimate how positive it is for St Helena to have maintained its rating as is and been granted ‘stable’ status.”
Gaining a Credit Rating is an action outlined in our Sustainable Economic Development Plan. The rating assists the recognition of the St Helena jurisdiction amongst the International Banking and Finance sector. It also helps external investors understand more about the investment environment which includes political, financial, legislative and environmental factors.
S&P also delivers Montserrat’s credit rating as well as other British Overseas Territories.
#StHelena #CreditRating #InvestmentGrade #SEDP
8 April 2020