S&P confirms Channel Islands' credit ratings

Posted: 15/01/2024

Lyndon TrottCredit rating agency S&P Global has affirmed Guernsey's rating at A+/A-1 with a stable outlook. This confirms the island's position as having an investment grade rating and "one of the wealthiest" jurisdictions they rate, the States of Guernsey reports.

Deputy Lyndon Trott (pictured right), Chief Minister, commented: "S&P recognises the important steps we have taken to prevent the structural deficit from significant deterioration. That said, it is also quick to highlight the need for us to continue to prioritise sustainable public finances and I know our community also appreciates how important this is.

"The current direction, with some limited revenue raising and a significant curtailing of the capital programme, is a temporary solution which allows us some more time and space to look for a genuinely sustainable long-term solution that is right for Guernsey.

"But we cannot be complacent, and we must continue that work even if ultimate decisions are made by the next Assembly."

IanGorst_dec21Jersey rating

S&P has also confirmed that there is no change to the long and short-term sovereign credit rating for Jersey, at AA-/A-1+, with the outlook stable.

In its report, S&P noted that Jersey’s economy will remain comparatively insulated from global economic headwinds, owing to the broadly favourable impact of rising global interest rates on Jersey’s international banking sector.

The stable outlook reflects balanced risks to Jersey’s creditworthiness over a two-year outlook horizon.

Jersey’s economy has rebounded strongly from the pandemic. Recent economic data showed that GDP was already above pre-pandemic levels in 2021, outpacing peers such as the UK.

The Minister for Treasury and Resources, Deputy Ian Gorst (pictured left), commented: “I am happy that our strong credit rating is confirmed by S&P as unchanged, despite the significant headwinds being experienced by economies around the world.

"S&P’s outlook for Jersey as a stable economy is something I’ll be working to maintain in the medium and longer term.”

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