International ratings agency Moody’s, has upgraded Jamaica’s long-term issuer and senior unsecured ratings from B2 to B1, with a revised outlook from stable to positive.

The decision to upgrade the rating reflects Moody’s analysis that the government faced with various external shocks, maintained a steadfast commitment to sustainable fiscal policy anchored on Jamaica’s medium term debt target.

The ratings agency noted that the government successfully reversed the increase in debt levels caused by the Covid-19 pandemic and effected fiscal policies, that supported the continued improvement in debt metrics.

It said Jamaica’s debt level is now well below pre-pandemic levels, declining more than 30 percentage points to 78 percent in 2022 from the 110 percent recorded in 2020, and is expected to continue that downward trajectory.

The outlook’s revision to ‘positive’ reflects the agency’s assessment that a sustained positive fiscal trajectory stemming from reforms undertaken to improve fiscal, monetary and economic policy effectiveness will continue to bolster the country’s credit resilience.

Responding to the ratings upgrade, Finance Minister Dr Nigel Clarke said it’s a testament to the effectiveness of the government’s economic policy framework.

He said the government must do everything to preserve and maintain these gains.