In Jamaica: S&P Sees Negative Outlook

1 November 2011

Some bad news for the ‘JAMAN’ holders out there. S&P cites “non-completion”of medium-term pension and tax reforms.

Standard & Poor’s (S&P) yesterday maintained Jamaica’s B- long-term foreign currency rating. However, the rating agency has revised the country’s outlook from stable to negative.
“The revision in the outlook is largely attributed to the non-completion of reforms related to Jamaica’s medium-term targets under the International Monetary Fund (IMF) standby agreement,” the Ministry of Finance said in a release yesterday, noting that the non-completion of the reforms has led to delays in Jamaica’s last three quarterly reviews under agreement.
The finance ministry pointed to public-sector pension reform and tax reform as some of the efforts currently under way to address the outstanding measures.
The ministry, however, added: “It should be noted that discussions with the IMF continue as the country seeks to secure the agreed medium-term economic plan which will ensure both fiscal and debt sustainability.”
The ministry noted that S&P has said the achievement of these conditions would lead to an improvement of Jamaica’s credit worthiness.


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