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Combination of factors gives TCI strong rating as a Caribbean leading economy

Providenciales, 03 Jul 2015 – The Public Financial Management Reform, the fact that government revenue blossomed by 16%, the connection the Turks and Caicos has with the United Kingdom as an overseas territory, that economic growth was 4.6% and is forecast to grow steadily at two to three percent over the next three years and that $110 million dollars in the sinking fund are among the reasons the Standard and Poor’s team kept the TCI a leading Caribbean economy and gave the nation a BBB+ rating for the second year running.

The Ministry of Finance yesterday explained that, “One of the benefits of maintaining a BBB+ rating is in strengthening the TCI’s negotiating position as it holds discussions with financial institutions ahead of refinancing its UK-guaranteed $170m bond, when it matures in February 2016.”

But it will be in September this year that TCIG invites bids for a refinance of the UK bail-out loan and it is the intention to use $110m already held in a sinking fund, plus an additional contribution from the first half of financial year 2015-16 to repay most of the bond, with the balance being covered by new bank debt.

The Standard & Poor’s team was in country in May and gave the rating just this past Tuesday, June 30th… the Ministry also used the opportunity to say in March 2015, the TCI government’s net debt to GDP ratio was approximately 24%, while its revenue to GDP is 30%. A government surplus of $77.3 million dollars and a recurrent revenue increase to $246.5 million tend to draw mixed reviews locally, but were impressive it appears to the S&P group.

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