PORT OF SPAIN, Trinidad, (CMC) -The Trinidad and Tobago government Wednesday welcomed the latest ratings from the US-based Moody’s that affirmed the country’s rating at Ba2 with a stable outlook.
It said that this affirmation is underpinned by the country’s return to sustained growth, primarily driven by the non-energy sector.
“The rating agency recognises the diversification efforts undertaken by our country which are reflected in the growth of our non-energy sector as well as our constitutional system of checks and balances, and improved data transparency track record,” said Finance Minister Colm Imbert, adding that “this also reflects our commitment to the implementation of structural fiscal and economic reforms”.
The Ministry of Finance in a statement said despite lower-than-projected energy revenues in fiscal year 2024, which have increased the fiscal deficit to 4.8 per cent of gross domestic product (GDP) from 1.7 per cent in fiscal year 2023, Moody’s recognises the government’s fiscal revenue diversification efforts, as evidenced by the operationalisation of Trinidad and Tobago Revenue Authority (TTRA) in 2025.
It said that the rating agency also acknowledges that potential fiscal risks are mitigated by significant buffers. These include the Heritage and Stabilisation Fund (HSF) and cash reserves amounting to more than 40 per cent of GDP in fiscal year 2024.
Moody’s indicated that the outlook on the current Ba2 rating remains stable, as a result of the decline in Trinidad and Tobago’s foreign-exchange reserves in early 2024 due to reduced energy receipts stemming from declining gas prices.
But it said that, “Shell T&T’s investment decision reduces uncertainty regarding Trinidad and Tobago’s future hydrocarbon production prospects and aligns with our baseline view about renewed expansion in natural gas production starting 2027”.
Imbert said that Trinidad and Tobago “is increasingly attracting oil and gas investment and Moody’s recognises this” adding that new gas projects like the Osprey or the Cascadura fields will add production this year and support our growth prospects.
“The outlook for the medium term is very promising,” Imbert said.
The finance ministry said that Trinidad and Tobago’s strengths are further recognised by international markets.
In June 2024, the country issued a 10-year US$750 million bond at a very attractive rate of 2.18 per cent over US Treasury Notes.
“Today, yields on Trinidad and Tobago’s debt are lower than those of countries rated two or three notches higher by Moody’s, such as Panama (Baa3) and Colombia (Baa2),” the ministry said, adding that Trinidad and Tobago holds investment grade ratings of BBB- from S&P and AA from CariCRIS, reflecting the country’s strong economic fundamentals and prudent fiscal management.