S&P Revised Jamaica’s Outlook To Negative From Stable On Pandemic Impact; B+ Ratings Affirmed
- On April 16, 2020, S&P Global Ratings revised its outlook on Jamaica to negative from stable. At the same time, S&P Global Ratings affirmed its 'B+/B' long-term and short-term foreign and local currency sovereign credit ratings.
- The COVID-19 pandemic will temporarily halt economic growth and fiscal progress in Jamaica, putting pressure on the country's external accounts and government finances.
- It is expected that the pandemic-related decline in tourism and other sectors will have a negative impact on the country's revenues, which together with government spending, will result in a fiscal deficit in the current year.
- The negative outlook reflects the risks that the effects of the COVID-19 outbreak will be more severe or prolonged than we currently expect, leading to a sustained fiscal deficit or more strained external accounts.