Guernsey Maintains AA+ Credit Rating
by Jason Gorringe, Lowtax.net, London
10 November, 2015
Standard & Poor's has confirmed that Guernsey's credit rating will remain AA+, while describing the jurisdiction as having "a wealthy and open economy, generally strong institutional environment, and robust fiscal position based on a prudent fiscal framework and sizeable government assets."
The assessment represents the highest level that jurisdictions without their own currency can achieve under the current ratings methodology.
Gavin St Pier, the island's Treasury and Resources Minister, stated that: "This decision is a strong public affirmation of Guernsey's fiscal and economic stability and strength. It is also confirmation that the rating agency considers that Guernsey's prosperity alongside effective and predictable policy setting justifies the highest rating that it is possible for Guernsey to obtain. Standard & Poor's cites the robust fiscal position, with liquid assets amounting to 112% of GDP, as supporting the position."
"It is clear that Standard & Poor's is assessing its criteria in relation to 'micro-sovereign' jurisdictions, such as Guernsey, over the course of the next few months. We will work with them in order to understand how any such technical changes might impact Guernsey's future credit ratings ahead of next year's assessment. In the meantime their decision to maintain Guernsey's credit rating at AA+ is a very positive development."
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