23 May 2015
The States of Jersey’s international credit rating issued by Standard & Poors (S&P) has been affirmed as one of the best that the credit ratings service awards.
S&P has affirmed its “AA+/A-1 + long and short-term sovereign credit rating, with a stable outlook” for the States of Jersey.
In its report, S&P noted: “The AA+ ratings on Jersey reflect our view of its mature political and institutional setting, transparent economic decision-making process, wealthy economy and significant fiscal flexibility supported by a high net general government asset position.”
The report also states that Jersey “has an open and wealthy economy and recognises that strong revenue performance historically has seen government accumulate substantial financial assets.” It is these assets that have supported the subdued financial sector revenues over the last couple of years.
Minister for Treasury and Resources, Senator Alan MacLean, said “It is positive news for Jersey that an international credit rating institution such as S&P continues to recognise the strength of our Balance Sheet. We have had a full and frank discussion about our fiscal position with them and our plans to deal with it and this this has provided the comfort they need to maintain their level of rating with their outlook view remaining stable.”
The AA+ credit rating was first assigned in November 2013 in order that the States was able to proceed with the £250 million bond earmarked to provide investment in affordable housing over the next 10 years.
Within the report, S&P also detail the circumstances in which they would either raise or reduce the Island’s credit rating and its rationale for awarding AA+.