Finance Minister Welcomes Fitch’s Affirmation Of ‘Bb-’Credit Rating, Stable Outlook

Minister of Finance and the Public Service, Hon. Fayval Williams, has welcomed the latest Fitch Ratings, which has maintained Jamaica’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB-’, with a stable outlook.

Fitch, in a statement on February 5, indicated that the Government has a strong decade-plus track record of adhering to a solid fiscal framework, which has resulted in a sharp reduction in the country’s debt to gross domestic product (GDP) ratio.

Minister Williams said that the rating affirmation and stable outlook, speaks volumes of the work of the Government, its steadfastness to fiscal discipline and the many sacrifices of the people of Jamaica.

In addition, she said, it reflect Fitch’s expectation that although the economic damages and recovery costs from Hurricane Melissa will be large, leading to an economic contraction in 2025 to 2026 and a deterioration in fiscal metrics, the Government will return to its fiscal consolidation efforts beginning in 2027.

The rating agency projects a temporary economic contraction of 1.5 per cent in 2025 and 2.6 per cent in 2026, as Jamaica advances reconstruction efforts.

Fitch indicated its belief that the Government will remain “committed to its fiscal framework and will actively seek to reduce its debt burden once reconstruction efforts are achieved.”

Minister Williams confirmed that this is the commitment of the Government of Jamaica.

Fitch lauded Jamaica’s financial preparedness for Hurricane Melissa, describing it as a “robust multilayered financial toolkit”.

Jamaica’s recovery and reconstruction efforts will be supported by a concessional multilateral loan package valued at over US$6 billion, government insurance and contingency funds totalling nearly US$250 million, additional lines of credit, a catastrophe bond facility of US$150 million and substantial expected private insurance inflows.

Fitch also noted Jamaica’s responsible fiscal response, including the temporary suspension of the Fiscal Responsibility Law to accommodate urgent reconstruction costs.

Fiscal balances are forecast to swing into deficit in the 2025 and 2026 financial years; however, primary surpluses are expected to resume in financial year 2027, aligning with the Government’s target to reduce debt‑to‑GDP levels toward 60 per cent.