LAST WEEK, on July 9, 2019, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on the Republic of Trinidad and Tobago to ‘BBB’ from ‘BBB+’. The outlook is stable. At the same time, S&P Global Ratings affirmed its ‘A-2’ short-term foreign and local currency sovereign credit ratings on the country. S&P Global Ratings also revised down its transfer and convertibility assessment to ‘BBB+’ from ‘A’.
The downgrade reflects lower than expected energy production and economic growth that we believe will weaken the Government’s revenue base and delay plans to balance its budget by the 2020-2021 fiscal year. It also reflects delays in making institutional reforms to strengthen tax revenue collection and to improve the provision of timely economic data.