Moody's trims Trinidad & Tobago

Moody's Investors Service said it downgraded the government of Trinidad & Tobago's long-term issuer and senior unsecured ratings to Ba2 from Ba1. The outlook was changed to stable from negative.

“The Ba2 rating reflects the sovereign's diminished shock-absorption capacity in the aftermath of the pandemic, evidenced by a materially higher general government debt burden of 85%-90% of GDP over the next three years, up from 62% in fiscal 2019 (ending September 2019). A higher debt burden will result in a weaker credit profile even with a strong economic recovery in 2022 and GDP growth of about 2% in 2023-24 driven to a large extent by both by higher energy prices and hydrocarbon production levels,” Moody’s said in a press release.

The outlook considers the view that the government's efforts improve the fiscal position by increasing non-hydrocarbon revenue and curtailing spending, the agency said.

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