LONDON--(BUSINESS WIRE)--Fitch Ratings has assigned 'B-' senior unsecured debt ratings to Jamaica's USD1.35 billion in bonds maturing on 28 April 2028 and USD650 million of bonds maturing on 28 July 2045.
The government will use the proceeds to finance the buyback of bilateral sovereign external debt accumulated under the Petrocaribe concessional financing programme, and for budget financing.
KEY RATING DRIVERS
Jamaica's 'B-' rating is driven by its very high government debt burden, low growth, and fragile but improving external finances. The Outlook on the rating is Positive, as the government continues broadly to adhere to fiscal targets agreed with the IMF under a three-year Extended Financing Facility, the current account deficit has narrowed and there are signs of improved business confidence and growth prospects.
The rating would be sensitive to any changes in the Jamaica's long-term foreign currency Issuer Default Rating (IDR). Fitch upgraded Jamaica's long-term foreign-currency IDR to 'B-' in February 2014 and revised the Outlook on the ratings to Positive from Stable in February 2015.
Date of relevant committee: 19 February 2015
Additional information is available on www.fitchratings.com