Fitch revises Aruba outlook to positive

Fitch Ratings said it changed its outlook for Aruba to positive from stable and affirmed Aruba's long-term foreign-currency issuer default rating at BB+.

“The revision of the outlook to positive reflects the greater institutionalization of Aruba's fiscal framework that includes overall fiscal surplus targets and a debt anchor albeit with a short track record, a rapidly declining debt trajectory, and continued growth driven by the tourism sector,” Fitch said in a press release.

The agency added “Tourist arrivals continue to reach new records, with estimated arrivals in 2023 reaching 111% of 2019 levels, and tourism receipts and revenue per available room reaching 137% and 114% respectively of 2019 levels. Fitch forecasts growth to slow in 2024-2025 (average 2.3%) but remain above potential growth as several large new hotels open, expanding room capacity by 10%. A tight labor market could be a drag on growth and has resulted in upward pressure on wages.”

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