first_imgPrime Minister and Finance Minister, Roosevelt Skerrit. Dominica’s creditworthiness has been adjudged “adequate” by the Caribbean Information and Credit Rating Services Limited (CariCRIS).In a press release dated March 15th, 2012 CariCRIS indicates that they have “assigned ratings on the USD$25 million debt issue (notional) of the Government of the Commonwealth of Dominica (GOCD) of CariBBB- (Foreign Currency Rating) and CariBBB- (Local Currency Rating) on its regional rating scale”.CariCRIS notes that level of creditworthiness of the government’s obligation has been adjudged in relation to other obligations in the Caribbean.These ratings, according to the Caribbean’s regional credit rating agency, reflect “Dominica’s favourable performance in the last 3 years relative to its regional peers in key areas such as economic growth and fiscal performance”.Dominica is rated as having the “highest 3-year average real gross domestic product (GDP) growth rate of 2.5%”.The construction, mining and quarrying and agriculture industries are said to have expanded by 3% in 2011 and CariCRIS predicts that there will be further growth in these industries in 2012. Dominica has also maintained one of the “lowest public sector Debt/GDP ratios of 60.2% in the last 3 years”.According to the release, the Dominica government reduced its “debt/GDP which moved to 66.2% in 2010 compared to 68.9% in FY2006” again CariCRIS anticipates that this trend is expected to continue however notes at a “slow pace”.Photo credit:cfsc.com.bbDominica’s monetary indicators, the report notes, have been “relatively stable and in line with its OECS peers”. “The external sector has generally performed creditably with a 3-year average balance of payments surplus of 1.3% of GDP. Gross international reserves are also sufficiently healthy to cover 8 months of imports. Gradual improvement in the external accounts is expected in the medium term as foreign direct investments (FDIs) and remittances increase in line with the slow global recovery”.CariCRIS has attributed Dominica’s “adequate” rating to the government’s “prudent fiscal policy, relatively low indebtedness, stable, moderate monetary indicators, relatively healthy external sector performance and consistency in economic policies in a stable political environment”. The strength of these ratings are “tempered by Dominica’s small, open economy with a narrow economic structure, which renders it highly vulnerable to external shocks; severe capacity constraints particularly in its human resources and the high dependence on grant funding to support the fiscal position and balance of payments”.CariCRIS is a unique market-driven initiative aimed at fostering and supporting the development of regional debt markets in the Caribbean.The company’s rating is an “objective assessment of an entity’s creditworthiness relative to other debt issuing entities”. The ratings aim to “provide a regionally relevant risk assessment of entities and the debt that they issue within a wider context of an analysis of economic trends and financial developments” which they claim will “significantly improve an investor’s ability to compare sovereign and corporate credits in the region”.Dominica Vibes News Tweet LocalNews Dominica government creditworthiness rated “adequate” by CariCRIS by: – March 29, 2012 35 Views   no discussions Sharecenter_img Share Share Sharing is caring!last_img

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