S&P Global Ratings revised its outlook on Turks and Caicos Islands to stable from positive, saying it expects the full economic recovery of the British Overseas Territory to take time following two major hurricanes last year.
The long-term and short-term sovereign credit ratings of the Caribbean islands were affirmed at BBB+ and A-2, respectively, as part of the ratings action.
"The outlook revision reflects our view that the likelihood that [Turks and Caicos Islands'] creditworthiness could strengthen within the next two years has become more remote," S&P said.
According to S&P, hurricanes Irma and Maria, which hit the islands in September 2017, caused an estimated $558 million in total damage, losses and other costs, amounting to 55% of GDP.
S&P expects real GDP to grow by about 2% on average from 2019 to 2021.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.