Fitch raises Aruba

Fitch Ratings said it upgraded Aruba's long-term foreign-currency issuer default rating to BB+ from BB.

“The upgrade of Aruba's rating to BB+ reflects its strong post-pandemic economic and fiscal rebound, driven by the tourism sector,” Fitch said in a press release.

Visitor arrivals in 2022 rebounded to 98% of 2019 levels, and tourism receipts achieved record levels. “New hotel projects are under construction or have recently opened, which will expand room capacity by about 10% through 2025. The recovery of the cruise industry has been more gradual (cruise visitors arrivals reaching 73% of 2019 levels). Fitch forecasts growth of 7% in 2022, following a strong rebound of 17.2% in 2021,” the agency said.

However, high public debt and interest and the weakness of an economy based on a single industry constrain the rating, Fitch said.

The outlook is stable.

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