CariCRIS reaffirms VI’s high creditworthiness

The Virgin Islands has retained its investment-grade credit ratings from Caribbean Information and Credit Rating Services Limited (CariCRIS), with the regional ratings agency reaffirming the territory’s high level of creditworthiness and maintaining a stable outlook.

CariCRIS reaffirmed the territory’s issuer credit ratings of CariAA for both foreign and local currency obligations, according to a government press release. The ratings indicate “a high level of creditworthiness relative to other obligors across the Caribbean,” the release stated.

Premier and Finance Minister Dr Natalio Wheatley said the latest assessment reflected the territory’s economic resilience and fiscal management practices.

“This latest assessment by CariCRIS affirms the strength and resilience of the Virgin Islands’ economy and the government’s steadfast commitment to sound fiscal management and good governance,” Dr Wheatley stated.

“We remain focused on sustaining economic growth, enhancing institutional capacity, and maintaining the territory’s reputation as a premier international financial centre and a leading tourism destination, while upholding the highest standards of transparency and accountability,” Dr Wheatley added.

The ratings agency also maintained a stable outlook for the territory, citing expectations of continued prudent fiscal management under the Protocols for Effective Financial Management (PEFM), as well as modest economic growth supported by tourism and financial services activity.

According to the release, CariCRIS identified several factors supporting the reaffirmed ratings. These included anticipated support from the United Kingdom as an Overseas Territory, sustained low debt levels, governance reforms following the Commission of Inquiry, and high projected gross domestic product per capita.

The agency projected the Virgin Islands’ GDP per capita at US$45,861 for 2025 and noted that the territory’s dollarised economy continued to support trade stability.

CariCRIS also stated that the territory’s ratings could improve if the Virgin Islands achieves sustained real GDP growth of at least five per cent over the next two years or if company incorporations return consistently to pre-pandemic levels.

However, the agency noted that the territory remains vulnerable to external shocks, including natural disasters and changing international regulatory requirements. It also pointed to limitations in human resource capacity and the need for stronger monitoring of the external sector.

The government said it remained committed to maintaining its position as a leading offshore financial centre and tourism destination while preserving the standards of governance and fiscal transparency highlighted in the latest assessment.