18 January 2020
Jersey’s credit rating has been reviewed by Standard & Poor’s (S&P).
While the long and short-term sovereign credit ratings have been maintained at AA- the outlook has been revised from negative to stable. This outlook assessment is a reflection of their view of the potential direction of a long-term credit rating.
The review, part of the cyclical 6-monthly assessment process, reflects the revision of the UK rating from a negative to stable outlook. The UK's revision follows the result of their December 2019 election, which Standard and Poor’s believe will now afford the UK government more room to engage with the EU over their future relationship.
The Minister for Treasury and Resources, Deputy Susie Pinel, said: “This is a really positive outcome and reflects that Jersey has demonstrated it has very strong capacity to meet its financial commitments through the work the Government has undertaken to bolster reserves and prepare Jersey for a potential economic downturn.
"The Government does, however, remain conscious of the potential risks to Jersey’s economy, pending the outcome of the UK’s future negotiations around Brexit. We will therefore continue to take a cautious approach in our financial planning.”
In their report, Standard and Poor’s specifically highlight Jersey’s fiscal buffers, noting that the sizeable fiscal buffers are an important rating strength, with assets estimated at more than 120% of GDP at the end of 2019.