Moody’s has affirmed Trinidad and Tobago’s Ba2 rating with a Stable outlook, citing a return to sustained growth driven by the non-energy sector.
While lower energy revenues in 2024 increased the fiscal deficit to 4.8% of GDP (up from 1.7% in 2023), Moody’s commends the government’s diversification efforts, including the launch of the Trinidad and Tobago Revenue Authority (TTRA) in 2025.
The agency highlights the country’s robust fiscal buffers, such as the Heritage and Stabilisation Fund (HSF) and cash reserves exceeding 40% of GDP in 2024.
Additionally, investments in new gas projects, including Osprey and Cascadura, signal strong growth prospects, with expanded natural gas production anticipated from 2027.
Minister of Finance, Colm Imbert, noted that Moody’s recognises the government’s focus on fiscal and economic reforms, as well as its commitment to transparency and diversification.
He also emphasised the growing international confidence in Trinidad and Tobago’s economy, evidenced by the successful issuance of a 10-year, $750M bond in 2024 at competitive rates.
This affirmation, combined with strong investment-grade ratings from S&P and CariCRIS, reflects the nation’s solid economic fundamentals and prudent fiscal management.
View full release from the Ministry of Finance Trinidad and Tobago here:
https://lnkd.in/eTfuVamK
Who is Moody's?
Moody's Corporation's Investors Service is one of the world's leading credit rating agencies. It evaluates the creditworthiness of borrowers, including governments, corporations, and financial institutions, and assigns ratings to their debt. These ratings help investors assess the risk of lending money or investing in those entities. Moody's ratings are widely used in global financial markets as a benchmark for credit risk.
What is a Ba2 Rating?
A Ba2 rating, as defined by Moody's credit rating scale, falls within the non-investment grade category also known as speculative grade or junk bonds, and signifies moderate credit risk. A Ba2-rated entity is currently meeting its debt obligations but is more vulnerable to economic fluctuations or financial challenges.
Within Moody's hierarchy, investment-grade ratings range from Aaa (highest quality) to Baa3 (lowest investment grade), while non-investment grade begins at Ba1 and extends to C, which represents the highest risk of default.