BVI beats neighbours with strong credit rating

The Caribbean Information and Credit Rating Services Limited (CariCRIS) has given the BVI a strong credit rating, saying the territory has ‘high creditworthiness’ relative to other countries in the region.

CariCRIS is a leading regional credit rating agency that provides independent opinions on the creditworthiness of governments, corporations, financial institutions, and other issuers in the Caribbean.

The agency upgraded the BVI’s rating from CariA – good level of credit worthiness to CariAA – high level of credit worthiness.

CariCRIS has also continued to assign a stable outlook on the ratings.

Premier Dr Natalio Wheatley said the upgraded rating is a testament to the Virgin Islands’ sound fiscal management and its commitment to economic stability, even amidst global challenges.
“Our Territory’s economic fundamentals remain strong, demonstrating the resilience of our people, our governance practices and the building of a sustainable nation,” the leader said.

Premier Wheatley said the factors contributing to the rating include, continued support from the United Kingdom and Strong Economic Fundamentals: “The Virgin Islands boasts a high GDP per capita, driven by a robust and growing tourism industry and a stable financial services sector; dollarisation; pegging the local currency to the US dollar fosters economic stability and facilitates ease in international trade,” Premier Wheatley explained.

He added that the BVI’s fiscal policy is a major factor for the upgraded rating, citing the Protocols for Effective Financial Management (PEFM) framework which he said guides responsible fiscal practices, resulting in low public debt levels.

“The government’s ability to maintain this positive credit rating, despite global economic challenges and other international pressures, underscores its commitment to responsible economic stewardship,” said Premier Wheatley.

If the BVI continues to improve, it can attain a rating of CariAAA – the highest level of creditworthiness relative to others in the Caribbean.

In the meantime, the BVI’s credit performance ranks higher than Caribbean countries like Anguilla that received a CariA rating — good credit worthiness, and St. Lucia that maintains “adequate creditworthiness.”