Jersey Holds On To Good Credit Rating
by Jason Gorringe, Lowtax.net, London
27 November, 2014
Credit rating agency Standard and Poor's has reaffirmed Jersey's AA+/A-1+ long- and short-term sovereign credit ratings, after the completion of a sustained fiscal consolidation program for the territory.
S&Ps affirmation of Jersey's credit rating is thanks in part to the island's prudent budgetary measures, which since the crisis have included significant cuts to government spending and most notably an increase to the island's goods and services tax rate, from three percent to five percent. More recently, in the 2015 Budget, Jersey capped mortgage interest tax relief at GBP15,000 (USD23,560) and increased the stamp duty payable on residential property costing GBP1m or more on a progressive basis.
Geoff Cook, CEO Jersey Finance Limited, said, "We know the importance that international investors attach to the political and economic stability of the jurisdiction when they consider their asset management strategies, so it is extremely valuable to the finance industry that Jersey has retained such a strong and positive assessment from the credit rating agency once more. It will be particularly helpful when highlighting the industry's strengths in the competitive overseas markets where Jersey is stepping up its presence."
The credit rating was first assigned in November 2013.
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