The Caribbean Information and Credit Rating Services Limited (CariCRIS) has adjudged as adequate the creditworthiness of the Dominica government based on the country’s economic performance during the last three years.
The agency has assigned the rating of CariBBB- on the Dominica’s government’s debt of US$25 million, CariCRIS said in a release on Thursday.
It said the rating indicate that the level of creditworthiness of this obligation, adjudged in relation to others debts in the Caribbean is adequate.
The ratings reflect Dominica’s favourable economic performance in the last three years relative to its regional peers in key areas such as economic growth and fiscal performance, said the agency.
Dominica also has the third highest three-year average real gross domestic product (GDP) growth rate of 2.5 per cent, CariCRIS said.
In addition, Dominica has maintained one of the lowest public sector debt/GDP ratios of 60.2 per cent in the last three years.
According to the rating agency, monetary indicators have been relatively stable and in line with its peers in the Organisation of Eastern Caribbean States.
The external sector has generally performed creditably with a three-year average balance of payments surplus of 1.3 per cent of GDP.
Gross international reserves are also sufficiently healthy to cover 8 months of imports, the release said.
“These rating strengths are tempered by the small, open economy with a narrow economic structure, which renders it highly vulnerable to external shocks; severe capacity constraints particularly in its human resources, and the high dependence on grant funding to support the fiscal position and balance of payments,” CariCRIS added.
CariCRIS’ CEO, Wayne Dass applauded the Dominica government for its decision to contribute to domestic and regional capital market development by accessing the regional credit rating.
Dass said the government’s decision to make the rating public also spoke volumes to their commitment to transparency and openness and sets a good example for other sovereigns in the region to follow.