International credit rating agency Standard & Poor’s (S&P) has re-affirmed the sovereign credit rating for Jersey as AA-/A-1 + with a stable outlook. This is one of the highest possible ratings and it follows the agency’s latest bi-annual evaluation.
This analysis is largely based on updated information from S&P’s last visit to the island, in January, when it met politicians, senior civil servants, regulators and business representatives. The rating committee agreed that the updated information confirmed that all key rating factors were unchanged.
In its report, S&P highlighted ‘the island’s strong and flexible institutions, wealthy economy and considerable fiscal buffers'. It also noted:
• Strong performance in Jersey's non-finance sector led to solid GDP growth in 2016, though Brexit uncertainties will likely flatten GDP growth over our three-year forecast horizon
• A strong outturn in headline general government revenue has improved Jersey's fiscal balance
• We believe fiscal deficits will gradually decline, with Jersey set to reach a balanced position by 2019
• We are therefore affirming our long and short-term sovereign credit ratings on Jersey at AA-/A-1+
• The stable outlook reflects our view that, over the next three years, the risks to Jersey's financial sector and its fiscal performance will be balanced by its still-significant economic resilience