S&P Global Ratings raised Fiji's long-term local- and foreign-currency sovereign credit ratings to BB- from B+, with a stable outlook, citing policy continuity and expectations of improved budgetary performance.
Fiji's political stability has improved following two successive democratic elections, which will help with policy continuity, according to S&P Global Ratings. Meanwhile, downside risks from reconstruction efforts since Tropical Cyclone Winston hit in 2016 have declined.
The rating agency expects that the Fijian government's medium-term fiscal consolidation plan will help stabilize the country's debt burden, which has trended downward since 2017, at around 43% to 44% of GDP through fiscal 2022. The country's economy is also expected to continue expanding in the next 12 months.
S&P also affirmed Fiji's short-term ratings at B.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
