Standard And Poor's Praises Jersey's Policies
by Jason Gorringe, Lowtax.net, London
25 May, 2015
International ratings agency Standard & Poor's (S&P) has praised the Jersey Government's fiscal and economic policies in affirming the jurisdiction's "AA+/A-1+" long- and short-term sovereign credit ratings, with a stable outlook.
In its report, S&P noted: "The AA+ ratings on Jersey reflect our view of its mature political and institutional setting, transparent economic decision-making process, wealthy economy, and significant fiscal flexibility supported by a high net general government asset position."
The report states Jersey "has an open and wealthy economy and recognizes that strong revenue performance historically has seen government accumulate substantial financial assets," which have helped to compensate for subdued financial sector revenues over the last couple of years.
Jersey's Treasury Minister, Alan Maclean, said: "It is positive news for Jersey that an international credit rating institution such as S&P continues to recognize the strength of our balance sheet. We have had a full and frank discussion about our fiscal position with them and our plans to deal with it and this this has provided the comfort they need to maintain their level of rating with their outlook view remaining stable."
The AA+ credit rating was first assigned in November 2013 in order that the States was able to proceed with the GBP250m (USD387m) bond earmarked to provide investment in affordable housing over the next 10 years.
As Jersey does not have its own currency, the AA+ rating is the highest that a territory like Jersey can receive from Standard & Poor's, due to a change to the agency's ratings methodology.
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