Jersey AA+ Rated
26 June 2014
The States of Jersey recently were affirmed as having one of the best international credit ratings that Standard & Poors (S&P) awards. S&P has affirmed its "AA+ / A-1+ long- and short-term sovereign credit rating, with a stable outlook" for the States of Jersey.
In its report, S&P noted: "The ratings on Jersey reflect our view of its high wealth, strong fiscal flexibility, and public-policy stability." The report also states that "broad community and political support for prudent fiscal policies have resulted in balanced budgets on average over the past 10 years. The government has also accumulated substantial financial assets that can be drawn-down to support growth during more difficult economic times, such as in the past five years."
The rationale for AA+ rating
Within the report, S&P also detail the circumstances in which they would either raise or reduce the Island's credit rating and its rationale for awarding the AA+. The AA+ credit rating was first assigned in November 2013 in order that the States was able to proceed with the borrowing proposed in the Island's 2014 Budget for £250m investment in housing over the next 10 years. Treasury and Resources Minister Senator Philip Ozouf said "The confirmation of this high quality rating is extremely positive news for Jersey and is a key to our ability to secure that best possible outcome with our forthcoming Sterling Rated Bond issuance to finance our future housing needs. It is also encouraging that S&P have commented in the report that they expect our debut bond issuance to be a success. "The rating demonstrates that our prudent approach to financial management has set us on the right course and we will look closely at the potential to raise the rating even further in future."
Geoff Cook, CEO Jersey Finance Limited, commented:
"The announcement from S&P is naturally welcome news since it reinforces one of Jersey's key strengths which appeals to international investors which is our enduring economic stability and prudent financial management of the economy."